Precision Tool 2011 and 2012 Balance Sheets 2011 2012 2012 2011 $7,250 Cash $2,060 $1,003 $8,384 Accounts rec. 4,218 9,800 11,500 Accounts payable Long-term debt Common stock Retained earning 3,411 18,776 $24.247 Inventory 21.208 15,000 17,500 Total $27,129 6,357 Net fixed assets 14.160 14.080 Total assets $38.407 $41.202 Total liab & equity $18.407 $41.202 Precision Tool 2012 Income Statement Net sales $36,408 Less: Cost of goods sold 28,225 1.760 Less: Depreciation Earnings before interest and taxes 6,423 Less: Interest paid 510 Taxable income $5,913 Less: Taxes 2.070 Net Income $3.843 What is the return on equity for 2012? O 15.29 percent 16.46 percent O 17.38 percent 18.02 percent 18.12 percent