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Comparative Balance Sheets 2817 2016 $ 90,800 $ 80,000 810,880 890,800 800,800 720,000 $1,790,000 $1,600,800 2,660,800 2,400,000 $4,300,800 $4,000,080 500,880 400,880 100,880 180,000 Total Current Liabilities 680,880 500,880 400,800 300,000 $1,880,000 880,880 Common Stock (280,880 shares) 580,880 588,898 2,800,880 2,780,080 $3,300,000 53, 209, 888 Total Liabilities and Equity $4,300,800 $4,800,880 Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Total Assets Accounts Payable Bank Loans Long-term Bonds Total Liabilities Retainded Earnings Total Equity Note: The common shares are trading in the stock market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firms returm-on.equity ratio for 2017 s keep in mind that when a ratio involve Please s both income statement and balance sheet numbers, the balance sheet numbers for the beginning Prev 4 of 10 Noyt

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Answer #1

Return on Equity = Net Income available to shareholders/ Common Equity

= (Closing retained earnings- Opening retained earnings)/ Equity

= (2800000-2700000)/3300000

=3.03%

(We assume zero dividends and also there is no preference dividend)

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