At the beginning of the year, the net assets of Platinum & Steel Products were $
ID: 2633232 • Letter: A
Question
At the beginning of the year, the net assets of Platinum & Steel Products were $350,300. The only transactions affecting owners' equity during the year were net income of $37,000 and dividends of $14,500.
At the beginning of the year, the net assets of Platinum & Steel Products were $350,300. The only transactions affecting owners' equity during the year were net income of $37,000 and dividends of $14,500.
Required: Calculate Platinum & Steel Products's return on equity (ROE) for the year. (Round your answer to 2 decimal place. Omit the "%" sign in your response.)Explanation / Answer
ROE= Net income/ owners equity
owners equity= (350300+37000-14500)
ROE= 37000/(350300+37000-14500)
ROE= .099249 or 9.92%
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