Lisa Inc'S Return on Common Shareholders' Equity for Year 2 Was

question 130

Multiple Choice

Lisa Inc.'s return on common shareholders' equity for Year 2 was closest to which of the following?

• A) 7.8%.
• B) 10.6%.
• C) 10.9%.
• D) 12.4%.Return = (35 - 5)/282.5 = 10.6%.

---

Definitions:

Comparative Balance Sheets

Comparative balance sheets present the financial position of a company at two different points in time, allowing for analysis of changes and trends.

Inventory

The sum of all products and materials possessed by a firm, intended for either reselling or manufacturing.

Statement of Cash Flows

A financial report detailing the inflow and outflow of cash and cash equivalents for a business.

Direct Method

A cash flow statement preparation technique that lists all major operating cash receipts and payments for the period.