=+EX 17-18 Profitability ratios obj. 3

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a. 2006 rate earned on total assets, 9.5%

The following data were taken from the financial statements of Heston Enterprises Inc.

for the current fiscal year. Assuming that long-term investments totaled $2,100,000 throughout the year and that total assets were $4,000,000 at the beginning of the year, determine the following:

(a) ratio of fixed assets to long-term liabilities,

(b) ratio of liabilities to stockholders’ equity,

(c) ratio of net sales to assets,

(d) rate earned on total