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23 February, 10:44

The financial statements of Colorado Outfitters include the following selected data ($ in millions) : sales, $9,543; net income, $320; beginning stockholders' equity, $3,219; and ending stockholders' equity, $2,374. Calculate the return on equity. (Enter your answer in millions. For example, $5,500,000 should be entered as 5.5. Round your intermediate calculations and final answers to 1 decimal place.)

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  1. 23 February, 13:02
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    11.4%

    Explanation:

    Return on equity = Net income : Average stockholder equity

    $320: $2,796.5

    =11.4%

    Average stockholders' equity ($3,219 + $2,374) / 2

    =$5,493/2

    = $2,796.5

    Therefore the return on equity is 11.4%
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