Garrott Corporations total assets were $1,505,000 at the end of Year 2 and $1,520,000 at...
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Accounting
Garrott Corporations total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account)
$ 1,340,000
Cost of goods sold
830,000
Gross margin
510,000
Operating expenses
465,143
Net operating income
44,857
Interest expense
9,000
Net income before taxes
35,857
Income taxes (30%)
10,757
Net income
$ 25,100
The companys return on equity for Year 2 is closest to:
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