A company has the following financial information: net income $50,000, total assets $500,000, and total equity $300,000. Calculate the return on equity (ROE) and the return on investment (ROI) if the company invested $200,000 in the business.

A company has the following financial information: net income $50,000, total assets $500,000, and total equity $300,000. Calculate the return on equity (ROE) and the return on investment (ROI) if the company invested $200,000 in the business.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Formula Formula ROI (%) = Net Income Principal Amount × 100

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