Nicco Corporation Had the Following Accounts at January 1, 2021

question 78

Essay

Nicco Corporation had the following accounts at January 1, 2021: The company has profit of $ 79,000 in 2021 and paid $ 85,000 in dividends.
Instructions
a) Calculate the return on equity at December 31, 2021.
b) What does this ratio tell you about the corporation?

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Definitions:

Farm Subsidies

Financial aid and support programs provided by governments to help farmers reduce the risk of farming, ensuring a stable food supply.

Direct Payments

Cash transfers from governments to individuals or businesses for specific purposes, often used in agricultural subsidies or social welfare programs.

Agricultural Price Supports

Government interventions to stabilize or increase agricultural commodity prices through mechanisms such as subsidies, minimum price settings, or purchasing surplus.

Large-Scale Farmers

Farmers who operate extensive areas of land and generally engage in high-volume production of crops or livestock.