Using the information below, what is Puppy Company's return on equity for 2019? The following financial statement accounts and balances are for Puppy Company: Cash Accounts Receivable Total Inventory Prepaid Expenses Total Current Assets Property and Equipment Total Assets Total Current Liabilities Total Debt Total Liabilities Total Shareholders' Equity Sales / Net Revenue / Net Credit Sales COGS (Cost of Goods Sold) Gross Profit 2019 82,370 6,555 327,750 4,288 420,963 290,750 711,713 111,450 45,000 156,450 555,263 2018 71,740 5,963 364,680 5,382 447,765 250,612 698,377 128,857 50,512 179,369 519,008 2,250,000 2,064,676| 1,370,500 1,299,092 765,584 Net Income / Profit 879,500 207,850 250,094 Here are some formulas that you may find helpful:

Cornerstones of Financial Accounting
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Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Here are some formulas that you may find helpful:
Item
Formula
Desired Result
|Current assets / Current liabilities
Cash+ short-term investments + AR /
Current liabilities
Sales /
Average gross accounts receivable
Days in year / Receivables turnover
|Cost of goods sold / Average inventory
Days in year / Inventory turnover
Total liabilities / Total assets
Total liabilities /
Owner's (Shareholders') Equity
Gross Profit / Total revenue
Current Ratio
Quick Ratio (Acid-test)
Higher
Higher
Receivables turnover
Higher
Collection Period
Inventory turnover
Days sales in inventory
Debt to Total Assets
Debt to Equity
Lower
Higher
Lower
Lower
Lower
Gross Margin (%) (Gross
Profit Margin)
Profit Margin (%)
(Net Margin)
Higher
Net profit / Total revenue
Higher
Net sales / Average total assets
Higher
Higher
Asset turnover
Return on Assets
Net profit / average total assets
Profit / Average shareholders' equity
Return on Equity (ROE)
Higher
38.7%
37.4%
O 2.7%
158%
Transcribed Image Text:Here are some formulas that you may find helpful: Item Formula Desired Result |Current assets / Current liabilities Cash+ short-term investments + AR / Current liabilities Sales / Average gross accounts receivable Days in year / Receivables turnover |Cost of goods sold / Average inventory Days in year / Inventory turnover Total liabilities / Total assets Total liabilities / Owner's (Shareholders') Equity Gross Profit / Total revenue Current Ratio Quick Ratio (Acid-test) Higher Higher Receivables turnover Higher Collection Period Inventory turnover Days sales in inventory Debt to Total Assets Debt to Equity Lower Higher Lower Lower Lower Gross Margin (%) (Gross Profit Margin) Profit Margin (%) (Net Margin) Higher Net profit / Total revenue Higher Net sales / Average total assets Higher Higher Asset turnover Return on Assets Net profit / average total assets Profit / Average shareholders' equity Return on Equity (ROE) Higher 38.7% 37.4% O 2.7% 158%
Using the information below, what is Puppy Company's return on equity for 2019?
The following financial statement accounts and balances are for Puppy Company:
Cash
Accounts Receivable
Total Inventory
Prepaid Expenses
Total Current Assets
Property and Equipment
Total Assets
Total Current Liabilities
Total Debt
Total Liabilities
Total Shareholders'
Equity
Sales / Net Revenue /
Net
Credit Sales
COGS (Cost of Goods
Sold)
Gross Profit
2019
82,370
6,555
327,750
4,288
420,963
290,750
711,713
111,450
45,000
156,450
555,263
2018
71,740
5,963
364,680
5,382
447,765
250,612
698,377
128,857
50,512
179,369
519,008
2,250,000
2,064,676|
1,370,500
1,299,092
765,584
Net Income / Profit
879,500
207,850
250,094
Here are some formulas that you may find helpful:
Item
Formula
Desired Result
Transcribed Image Text:Using the information below, what is Puppy Company's return on equity for 2019? The following financial statement accounts and balances are for Puppy Company: Cash Accounts Receivable Total Inventory Prepaid Expenses Total Current Assets Property and Equipment Total Assets Total Current Liabilities Total Debt Total Liabilities Total Shareholders' Equity Sales / Net Revenue / Net Credit Sales COGS (Cost of Goods Sold) Gross Profit 2019 82,370 6,555 327,750 4,288 420,963 290,750 711,713 111,450 45,000 156,450 555,263 2018 71,740 5,963 364,680 5,382 447,765 250,612 698,377 128,857 50,512 179,369 519,008 2,250,000 2,064,676| 1,370,500 1,299,092 765,584 Net Income / Profit 879,500 207,850 250,094 Here are some formulas that you may find helpful: Item Formula Desired Result
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