Ice Video Corporation Had an Average Common Shareholders' Equity of $423,785.The

question 54

Short Answer

Ice Video Corporation had an average common shareholders' equity of $423,785.The company had net income during the year of $213,465.There were 258,000 shares of common stock outstanding throughout the year and no preferred stock at any time.Calculate return on equity (round to the nearest tenth of a percent).

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Definitions:

Standard Cost System

A standard cost system is an accounting method that uses cost estimates to predict the cost of production under normal conditions.

Direct Materials

Raw materials that are directly traceable to the finished product.

Standard Cost System

A method of cost accounting that uses cost estimates to predict the cost of producing a product under normal conditions, serving as a benchmark for evaluating performance.

Work in Process

Refers to the goods that are in the stages of production but are not yet complete.