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PLEASE EXPLAIN RETURN ON EQUITY Sarasota Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2024, its fiscal year end. All accounts have normal balances. Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Cash dividends-common Cash dividends-preferred Common shares Consulting revenue Depreciation expense Dividends payable Equipment $23,490 42,570 26,020 61,519 44,000 4,950 82,500 444,950 13,010 16,500 246,400 Income tax expense Insurance expense Interest expense Notes payable Preferred shares Prepaid expenses Rent expense Retained earnings Salaries expense Salaries payable Supplies expense $16,746 7,210 3,300 55,000 61,875 6,770 39,400 71,300 269,900 2,540 28,400

Sarasota Architects Ltd, is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31,2024 , its fiscal year end. All accounts have normal balances. Calculate return on equity. Note: No shares were issued during the year. (Round answer to 2 decimal ploces, eg. 52.75\%.) Return on equity % SARASOTA ARCHITECTS LTD. Statement of Retained Earnings Year Ended March 31, 2024 Retained Earnings, April 1, 2023 Add : Profit before incorne Tax $ Cash Dividends - Common Cash Dividends-Preferred $ Retained Earnings, March 31,2024 Prepare the shareholders' equity section of the balance sheet

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