Mars Corporation Has Provided the Following Data for Year 2

question 24

Multiple Choice

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

• A) 5.91%
• B) 7.40%
• C) 3.84%
• D) 71.20%

---

Definitions:

Division of Labor

The breakdown of production processes into distinct tasks, with different workers specializing in each task to increase efficiency and productivity.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business.

Barter

The direct exchange of goods and services without the use of money as an intermediary.

Money-Based Trade

Transactions involving the exchange of goods or services for money, as opposed to barter trade, where goods are exchanged directly for other goods.