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Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate Return on Common Equity.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).
Balance Sheet December 31, 2014
Cash and marketable securities$132,000Accounts payable $399,000
Accounts receivable$311,000Notes payable$98,500
Inventories$512,000Accrued expenses$89,300
Prepaid expenses$11,300Total current liabilities$586,800
Total current assets$966,300Long-term debt$799,400
Gross fixed assets$2,104,000Par value and paid-in-capital$298,000
Less: accumulated depreciation$398,000Retained Earnings$988,100
Net fixed assets $1,706,000Common Equity1,286,100
Total assets$2,672,300Total liabilities and owner’s equity$2,672,300
Income Statement, Year of 2014
Net sales (all credit)$4,276,600.00
Less: Cost of goods sold$3,292,982.00
Selling and administrative expenses$349,000.00
Depreciation expense$148,000.00
EBIT$486,618.00
Interest expense$49,600.00
Earnings before taxes$437,018.00
Income taxes$174,807.20
Net income $262,210.80
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