(Computing ratios)

Use the information from the balance sheet and income statement in the popup window to calculate the following ratios:

k. The return on equity is ___%.

Balance Sheet ASSETS $ Cash Accounts receivable Inventory 90,000 39,000 40,000 14,000 $ Prepaid expenses Total current assets Gross plant and equipment Accumulated depreciation 183,000 397,000 (67,000) $ 513,000 NU Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable $ 92,000 61,000 is $ Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings asse 153,000 120,000 204,000 36,000 513,000 Roy Total liabilities and equity $ 7% Income Statement le follo i Data Table Accounts payable $ 92,000 61,000 Accrued liabilities $ Total current liabilities Long-term debt Common stock 153,000 120,000 204,000 36,000 Retained earnings $ 513,000 Total liabilities and equity Income Statement Sales* 217,000 (80,000) 137,000 Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating income (35,000) (20,000) 82,000 (9,000) Interest expense Earnings before taxes 73,000 (29,200) Taxes 43,800 Earnings available to common shareholders * 12% of sales are cash sales