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Bookmarks ToolsWindow Help 79% > Fri 11:43 AM a : gageNowv2 1 Online teach ain.do?invoker assignments& a Search The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant, and equipment $40,049 25,531 30,607 251,532 Total assets $347,71 Liabilities and Stockholders Equity 56,527 98,148 193,044 347,719 Current liabilities Long-term liabilities Total liabilities and stockholders" equity Income Shatement 81,446 (32,578) 48,868 Cost of goods sold Gross margin PreviousNext Alt work saved.

Explanation / Answer

Answer is 6.2%

Total Assets = $347,719

Income from Operations = Gross Margin - Operating Expenses
Income from Operations = $48,868 - $27,457
Income from Operations = $21,411

ROE = Income from Operations / Total Assets
ROE = $21,411 / $347,719
ROE = 6.2%

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