Calculate the approximate return on equity ratio

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Question - In the previous year, Orange Corporation had total assets of $22,000; total liabilities $19,000; and total equity of $3,000. In the current year, Orange Corporation has the following account balances (alphabetical order):

Accounts payable $1,000

Accounts receivable 1,000

Cash 1,000

Cost of goods sold 8,000

Ending paid-in-capital 1,000

Ending retained earnings 4,000

Equipment 12,000

Interest expense 1,000

Long-term debt 10,000

Merchandise inventory 4,000

Net sales 16,000

Operating expenses 3,000

Wages payable 2,000

Based on the account balances above, calculated the approximate return on equity (ROE) ratio.

Reference no: EM133042753

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