question 18

Multiple Choice

a) 22.22% b) 37.20% c) 21.00 d) 17. 74 E) 29.70

Use the following information for Manolo Inc. to answer this question. Manolo, Inc. 2017 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income $9,000 7,490 420 $1,090 88 $1,002 351 $ 651 Cash Accounts rec. Inventory Total Net fixed assets Total assets Manolo, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 $ 180 $ 215 Accounts payable 980 880 Long-term debt 1,580 1,595 Common stock $2,740 $2,690 Retained earnings 3,320 3,760 $6,060 $6,450 Total liab. & equity 2016 2017 $1,270 $1,485 1,030 1,295 3,270 2,930 490 740 $6,060 $6,450 What is the return on equity for 2017