Brimfield Corporations balance sheet indicates the following balances as of December 31, 2009. Cash ................ $ 70,000

Question:

Brimfield Corporation’s indicates the following balances as of December 31, 2009.
Cash ................ $ 70,000
Accounts receivable .......... 80,000
Inventory .............. 55,000
Property, plant, and equipment .... 500,000
Accounts payable ........... 75,000
Bonds payable (due in 2015) ..... 100,000
Common stock (12/31/2008) ..... 275,000
Common stock (12/31/2009) ..... 325,000
Retained earnings (12/31/2008) .... 200,000
Retained earnings (12/31/2009) .... 260,000

Required:
If Brimfield’s 2009 net income is $80,000, determine its return on equity.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...