Compute the return on equity and return on assets

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Question - The following table contains financial statement information for Izzy Corporation. ($ millions)

2016 2017

Total Assets $105,000 $125,000

Net Income $10,000 $11,000

Sales $95,000 $100,000

Equity $30,000 $31,000

Required - Compute the return on equity (ROE) and return on assets (ROA) for 2017.

1. 25.5% ROE, 10.0% ROA

2. 31.9% ROE, 11.2% ROA

3. 36.1% ROE, 9.6% ROA

4. 37.2% ROE, 13.1% ROA

Reference no: EM132629385

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