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Revenues
Revenues are the gross income received before any deductions for discounts, expenses, returns, and so on. It is also called sales in most organization. A much less common usage refers to interest income, refunds, royalties, dividends, and claim settlements as revenue. Commonly, however, each kind of income carries its own designation like fees, sales, income, claims, and soon.
Lee Sun's has sales of $6,000, total assets of $5,000, and a profit margin of 10 percent. The firm has a total debt ratio of 40 percent. What is the return on equity?
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