4. Stockholders equity totaled $84,000 at the beginning of the previous year. Compute the return on equity ratios for the current and previous years. Are the current-year results better, or worse, than those for the previous year?

5. Net property and equipment totaled $134,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current-year results better, or worse, than those for the previous year?

6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the companys asset growth?

Maxwell Corporation declared and paid a cash dividend of $7,425 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information:

Current Previous $ 317,000 165,650 151,350 58,600 5,900 86,850 26,055 $ 60,795 $ 261,000 149,000 112,000 48,930 5,170 57,900 17,370 $ 40,530 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $ 65,745 29,900 44,000 146,000 $ 285,645 $ 36,500 4,425 96,400 137,325 36,400 111,920 $ 285,645 $ 43,700 25,500 41,000 134,200 $ 244,400 $ 34,500 3,750 111,200 149,450 36,400 58,550 $ 244,400 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 4-a. Stockholders' equity totaled $84,000 at the beginning of the previous year. Compute the return on equity ratios for the current and previous years. (Round percentage values to i decimal place.) 4-b. Are the current-year results better, or worse, than those for the previous year? 4-a. Current Year 167.0 % 4-a. Previous Year 67.3 % 4-b. Current year return on equity Better ratio? Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 5-a. Net property and equipment totaled $134,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.) 5-b. Are the current-year results better, or worse, than those for the previous year? 5-a. Current Year 2.26 5-a. Previous Year 1.86 5-b Current year fixed asset turnover ? Better Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 7 Required 8 6-a. Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.) 6-b. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 6-a. Current Year 6-a. Previous Year 6-b Current year debt-to-assets ratio? 0.34 0.45 Larger Proportion