$31-32.$Rand. $01$

Question $5$

Partially correct

Mark $0\mathrm{.}40$ out of $0\mathrm{.}80$

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Applying the Accounting Equation and Calculating Return on Equity and Debt$-$to$-$Equity Ratio

At the end of Year $2,$ Colgate$-$Palmolive Company reported stockholders' equity of $$2,917$ million and total assets of $$11,172$ million. Its balance in stockholders' equity at the end of Year $1$ was $$3,257$ million. Net income in Year $2$ was $$2,203$ million.

a$.$ Calculate Colgate$-$Palmolive's return on equity ratio for Year $2.($Round your answer to one decimal place.$)$

Note: Enter answer as a percent. Round your answer to one decimal place.

$\%$

b$.$ Calculate its debt$-$to$-$equity ratio as of December $31,$ Year $2.($Hint: Apply the accounting equation to determine total liabilities.$)$ Round your answer to one decimal place.

Note: Enter answer in decimal form. Round your answer to one decimal place.

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