Based on the Selected Financial Information Shown Below, Calculate the Return

question 39

Short Answer

Based on the selected financial information shown below, calculate the return on equity for year 2. Round to two decimal places.
Year 1 Year 2
Total assets $1,200,000 $1,300,000
Total shareholders' equity $760,000 $800,000
Sales $5,000,000 $5,500,000
Net Income $200,000 $225,000

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Definitions:

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data are.

Deviations

Differences between observed values and some reference value, often the mean of the dataset.

Standard Deviation

A gauge for assessing the spread or differentiation of values within a group of data points.

Variance

A measure of the spread of a set of values, calculated as the average of the squared deviations from the mean.