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Home Q & A Board Other Fields Homework Help Business Accounting
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tivo tivo
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7 years ago
For the current year, Company A had sales of $300,000, net income of $200,000 and average common Stockholders' Equity of $900,000. During the same year, Company B had sales of $200,000, net income of $100,000 and average common Stockholders' Equity of $400,000. Which of the following statements is TRUE regarding this situation?
A) Company A has a better return on equity, $200,000 compared to Company B's $100,000.
B) Company B has a better return on equity, 25% compared to Company A's 22.22%.
C) Company A has a better return on equity, $300,000 compared to Company B's $200,000
D) Company B has a better return on equity, 50% compared to Company A's 66.66%.
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Financial Accounting

Financial Accounting


Edition: 3rd
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largerthanlifelargerthanlife
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tivo Author
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#2
7 years ago
Luckily this is the last business course I'll be taking. Thank you greatly
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