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Last Year Harrington Inc

question 83

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Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 45.0%. Based on the DuPont equation, what was the ROE?


Definitions:

Vertical Merger

A combination of two or more companies at different stages of production in the same industry.

Conglomerate Company

A large corporation that owns a diversified group of other companies across various industries, with no single business dominating its portfolio.

Minority-Owned

Refers to a business that is at least 51% owned, controlled, and operated by individuals from a recognized minority group.

Small Businesses

Independent enterprises with limited size and revenue, characterized by fewer employees and lesser market share compared to larger companies.

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