Company X Has Net Sales Revenue of $1,250,000,cost of Goods

question 168

Essay

Company X has net sales revenue of $1,250,000,cost of goods sold of $760,000,and all other expenses of $290,000.The beginning balance of stockholders' equity is $400,000 and the beginning balance of fixed assets is $361,000.The ending balance of stockholders' equity is $600,000 and the ending balance of fixed assets is $389,000.
Required:
Compute the return on equity (ROE)ratio.

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Definitions:

Marginal-cost-marginal-benefit Rule

A principle suggesting that optimal decision making involves continuing an activity until the additional benefits no longer exceed the additional costs.

Cost-benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieve benefits while preserving savings.

Economic Project

A planned undertaking, typically with specific goals and financial frameworks, aimed at contributing to economic development or addressing economic issues.