Find the Ratio of Net Income After Taxes to Average

question 51

Multiple Choice

Find the ratio of net income after taxes to average owner's equity. Round to the nearest tenth of a percent.
-Owner's equity at beginning of year: $1,748,000. Owner's equity at end of year: $2,122,000. Net income after taxes: $447,500.

• A)23.1%
• B)21.1%
• C)25.7%
• D)25.6%

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Definitions:

Sum Of Squares

A statistical technique used to measure the variability within a dataset, calculated by summing the squared differences from the mean.

Standard Error

The standard deviation of a sampling distribution of a statistic, most commonly of the mean.

Coefficient Of Determination

A statistic that provides a measure of how well observed outcomes are replicated by the model, based on the proportion of total variation of outcomes explained by the model.

Coefficient Of Determination

A statistical measure represented by the symbol R², indicating the proportion of the variance in the dependent variable predictable from the independent variable(s).