Calculate S&J Plumbing, Inc. return on equity

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Calculate S&J Plumbing, Inc. return on equity

S&J Plumbing, Inc.’s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet that the company’s equity for the fiscal year-end 2010 is $1,746.

  • Calculate the company’s return on equity and explain whether the managers are providing a good return on the capital provided by the company’s shareholders.
  • Diagram and explain the operating cycle of a service company.

 

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