Question: Earth Enterprises began the year 2020 with total stockholders' equity of $2,400,000. Its net income for 2020 was $640,000, and $106,800 of dividends were declared.

Earth Enterprises began the year 2020 with total stockholders' equity of $2,400,000. Its net income for 2020 was $640,000, and $106,800 of dividends were declared. Earth Enterprises had no other changes to shareholders' equity during 2020. What was Earth's return on equity at the end of 2020? Hint: Pay attention to the timing here. Make sure you are using ENDING Shareholders' Equity in your analysis.

Step by Step Solution

★★★★★

3.35 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

SOLUTION To calculate Earth Enterprises return on equity ROE at the end of 2020 we need to use the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The Pullman Inc, a segment of Sysco Holdings manufactures chain hoists. The raw materials inventories on hand on October 1 were as follows: Chain................12,000lb, $24,000...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...

To analyze the sequences in Table 3.2 (see the next page), you will use manual methods that were used by geneticists until the development of computer-based methods. However, to make your comparison...

Earth Enterprises began the year 2020 with total stockholders' equity of $2,400,000. Its net income for 2020 was $640,000, and $106,800 of dividends were declared. Earth Enterprises had no other...

The following balances were extracted from the accounting records of Moshupi Ltd as at 1 January 2020. R Debit/ (Credit) Ordinary shares...

Find attached the information. Information is attached Question 1 William Corp. issued 10,000 shares of its $1 par value common stock for a building. The building was listed for sale at $500,000....

ONLY SUBMIT ONLINE, OTHERWISE, YOUR ASSIGNMENT WILL NOT BE MARKED QUESTION 1 (35 marks, 63 minutes) Tech-Savvy Limited (TSL) is a technology innovation company based in Cape Town. The company focuses...

What should be filled in the blanks? On January 1, 2020, Panther, Inc., issued securities with a total fair value of $572,000 for 100 percent of Stark Corporation's outstanding ownership shares....

A comparative balance sheet for Carter Fuel Injection Systems, Inc. appears below: Carter Fuel Injection Systems, Inc. Comparative Balance Sheet Dec 31, 2020 DC312012 Assets Cash $ 34,000 Accounts...

Part II Financial Statements a. UCLA Docking mangement is very impressed with the work you have done so far filling in for the regular accountant. They have reached there fiscal year end and now need...

A stationary process X (t) is applied to a linear time-invariant filter of impulse response b (t), producing an output Y (t). (a) Show that the cross-correlation function RYX (?) of the output Y (t)...

Dass Taxis has a current share price of $2.26. For the past year, the company had profit for the year (or period) of $22 600, total equity of $34 800, taxi revenue of S14 000 and 25000 shares...

0 1 x 2 1 - x 2 2 d x ( ( Integrand: pi * x 2 * sqrt ( 1 minus ( : x 2 } )

Suppose the yield of a certain crop (in bushels per acre) is related to fertilizer amount (in pounds per acre) as yield = 120 + .19fertilizer. (i) Graph this relationship by plugging in several...

Solve the recurrence T (n) = 3T (n) + log n by making a change of variables. Your solution should be asymptotically tight. Do not worry about whether values are integral.

Sunbeam Corporation manufactures and sells a variety of small household appliances, including toasters, food processors, and waffle grills. Exhibit 3.21 presents a statement of cash flows for Sunbeam...

Test the claim that there is a difference between the mean for presidents and the mean for British monarchs. Refer to the numbers of years that U.S. presidents, popes, and British monarchs lived...

Review the analysis from Exercise 31. Add a new variable that describes the potential interaction between the loan amount and the number of payments made. Then do a test of hypothesis to check if the...

The return of goods to the supplier will affect the purchase account. Question 27Answer True False

Researchers at the University of Houston decided to test the hypothesis that restaurant servers who squat to the level of their customers would receive a larger tip (Effect of Server Posture on...

Some commercial airplanes recirculate approximately 50% of the cabin air in order to increase fuel efficiency. The authors of the paper Aircraft Cabin Air Recirculation and Symptoms of the Common...

Breast feeding sometimes results in a temporary loss of bone mass as calcium is depleted in the mothers body to provide for milk production. The paper Bone Mass Is Recovered from Lactation to...

=+b. Suppose the investigators had believed a priori that the population standard deviation was about 4 MPa. Based on this supposition, how large a sample would have been required to estimate to...

=+26. Researchers have developed a chemical treatment that retards the growth of trees of a certain type whose branches pose a safety threat to power lines. However, an overly severe application of...

=+a. Calculate a lower confidence bound at the 95% confidence level for the true proportion of such hips that develop squeaking.