MINDTAP ulative Exam - Chapters 1-4 Test: Cumulative Exam - Chapters 1-4 Tme Rem
ID: 2811737 • Letter: M
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MINDTAP ulative Exam - Chapters 1-4 Test: Cumulative Exam - Chapters 1-4 Tme Remaning 0:29.20 Questions MC04.123 27, . Exhibit 4-1 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges,it does 29. Balance Sheet (Millions of $) 2018 Assets 30. $3,000 15,000 18,000 36,000 24,000 $60,000 Cash and securities S. Accounts receivable I Inventories 34, 35 Liablities and Equity Total crrent assets Net plant and equipmment 1 Total assets . $18,630 8,370 6,000 $33,000 . |Accounts payable 26, 27, 38 Accruals Notes payable Total current labilities 4 Total liabilities 41 Common stock 42. Retained earnings 9,000 $42,000 $5,040 12,960 $18,000 $60,000 Total common equity Total liabilities and equity 43 144, . 2018 4 Income Statement (Milions of s) $84,000 8,120 1,680 4 et sales Operating costs except depreciation 4 Eanings before interest and taxes (EBITExplanation / Answer
Answer is 11.00%
Net Income = $1,980
Total Common Equity = $18,000
Return on Equity = Net Income / Total Common Equity
Return on Equity = $1,980 / $18,000
Return on Equity = 11.00%
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