Last Year, a Firm Earned $67,800 in Net Income on Sales

Multiple Choice

Last year, a firm earned $67,800 in net income on sales of $934,600.Total assets increased by $62,000 and total equity increased by $43,500 for the year.No new equity was issued and no shares were repurchased.What is the retention ratio?

A) 29.62 percent
B) 35.84 percent
C) 56.25 percent
D) 70.38 percent
E) 64.16 percent