The balance sheet of California Clothing reports total equity of $600,000 and $700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $65,000 and $1,300,000, respectively. What is California Clothing's return on equity?

10%

Explanation:

return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%

Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.

answer; blank (1) hrm specialists,blank(2); line managers;

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20