Mars Corporation Has Provided the Following Data for Year 2

question 220

Multiple Choice

Mars Corporation has provided the following data for Year 2:
$\begin{array}{lr}\text {Sales }&\$1,330,000\\\text {Gross margin. }&\$500,000\\\text {Net operating income. }&\$79,692\\\text {Net income before taxes }&\$63,692\\\text {Net income. }&\$41,400\\\end{array}$
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%

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Definitions:

Sweden

A Scandinavian country in Northern Europe, known for its advanced welfare system, high standard of living, and innovative technology.

Absolute Advantage

The capacity of an entity to generate a higher volume of a certain good, product, or service compared to its rivals, while employing the same quantity of resources.

Italy

A country located in southern Europe, known for its rich history, culture, and significant contributions to art, food, and fashion.

Tariff

A tax imposed by a government on goods and services imported from another country.