A restaurant achieved $150,000 in net income. The restaurants balance sheet shows assets of $600,000, and liabilities

Question:

A restaurant achieved $150,000 in net income. The restaurant’s balance sheet shows assets of $600,000, and liabilities of $200,000. What is this restaurant’s return on equity ratio?

a. 37.5%

b. 0.375%

c. 3.75 %

d. 37.5%

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...