Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets.
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets.
Property, plant, and equipment (net) | $1,822,000 | |||||
Liabilities: | ||||||
Current liabilities | $181,000 | |||||
Mortgage note payable, 10%, ten-year note issued two years ago | 911,000 | |||||
Total liabilities | $1,092,000 | |||||
Stockholders' equity: | ||||||
Preferred $2 stock, $100 par (no change during year) | $655,200 | |||||
Common stock, $10 par (no change during year) | 655,200 | |||||
Retained earnings: | ||||||
Balance, beginning of year | $698,000 | |||||
Net income | 296,000 | $994,000 | ||||
Preferred dividends | $13,104 | |||||
Common dividends | 107,296 | (120,400) | ||||
Balance, end of year | 873,600 | |||||
Total stockholders' equity | $2,184,000 | |||||
Sales | $9,647,200 | |||||
Interest expense | $74,504 | |||||
Beginning-of-the-year amounts: | ||||||
Property, plant, and equipment (net) | $ 1,638,000 | |||||
Total assets | 3,112,000 | |||||
Retained earnings | 698,000 |
Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equity, (d) asset turnover, (e) return on total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places.
a. | Debt ratio | fill in the blank 1 % |
b. | Ratio of fixed assets to long-term liabilities | fill in the blank 2 |
c. | Ratio of liabilities to stockholders' equity | fill in the blank 3 |
d. | Asset turnover | fill in the blank 4 |
e. | Return on total assets | fill in the blank 5 % |
f. | Return on stockholders' equity | fill in the blank 6 % |
g. | Return on common stockholders' equity | fill in the blank 7 % |
Step by Step Solution
★★★★★
3.54 Rating (144 Votes )
There are 3 Steps involved in it
Step: 1
a The debt ratio is a measure of a companys financial leverage calculated as the companys total liab...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started