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Good Evening, I am having a hard time figuring out this homework. I feel that my first two answers are correct, but can't figure out
Good Evening, I am having a hard time figuring out this homework. I feel that my first two answers are correct, but can't figure out the rest. If you can show me how you arrived at your answer, that would be most helpful since I have other assignments to complete as well. Thank you.
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year. Property, plant, and equipment (net) $1,557,000 Liabilities: Current liabilities $207,000 Mortgage note payable, 8%, issued 2003, due 2019 1,038,000 Total liabilities $1,245,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,245,000 Common stock, $10 par (no change during year) 1,245,000 Retained earnings: Balance, beginning of year $1,328,000 Net income 492,000 Preferred dividends $49,800 Common dividends 110,200 $1,820,000 160,000 Balance, end of year 1,660,000 Total stockholders' equity $4,150,000 Net sales $11,785,200 Interest expense $83,040 Assuming that long-term investments totaled $2,698,000 throughout the year and that total assets were $5,125,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities 1.5 1557000/1038000 b. Ratio of liabilities to stockholders' equity 0.3 1245000/4150000 c. Ratio of net sales to assets d. Rate earned on total assets % e. Rate earned on stockholders' equity % f. Rate earned on common stockholders' equity %Step by Step Solution
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