Excerpts from Dowling Company's December 31, 2021 and 2020,
financial statements and key ratios are presented below (all
numbers are in millions):
2021 | 2020 | ||||||
Accounts receivable (net) | $ | 20 | $ | 16 | |||
Net sales | $ | 115 | 100 | ||||
Cost of goods sold | $ | 60 | 55 | ||||
Net income | $ | 20 | 17 | ||||
Inventory turnover | 5.22 | ||||||
Return on assets | 10.3 | % | |||||
Equity multiplier | 2.36 | ||||||
Dowling's return on equity for 2021 is (rounded):
Multiple Choice
22%.
24.3%.
17.4%.
9%.
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