Question: As background for this analysis, lets examine some relationships in Stimson Company, which has the following condensed balance sheet: If net income was $81,000, Stimson

As background for this analysis, let’s examine some relationships in Stimson Company, which has the following condensed balance sheet:

Assets Liabilities and Equity $ 600,000 Total liabilities Total equity 900,000 Total

If net income was $81,000, Stimson Company’s return on equity (ROE)
was Net income 4 Equity, or %.

Assets Liabilities and Equity $ 600,000 Total liabilities Total equity 900,000 Total $1,500,0000 Total $1,500,000

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