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Please, review and correct (2nd time posting it here) Six Measures of Solvency or Profitability The following data were taken from the financial statements of
Please, review and correct (2nd time posting it here)
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) | $1,390,800 | |||||
Liabilities: | ||||||
Current liabilities | $147,000 | |||||
Mortgage note payable, 8%, issued 2003, due 2019 | 732,000 | |||||
Total liabilities | $879,000 | |||||
Stockholders' equity: | ||||||
Preferred $4 stock, $100 par (no change during year) | $659,250 | |||||
Common stock, $10 par (no change during year) | 659,250 | |||||
Retained earnings: | ||||||
Balance, beginning of year | $704,000 | |||||
Net income | 336,000 | $1,040,000 | ||||
Preferred dividends | $26,370 | |||||
Common dividends | 134,630 | 161,000 | ||||
Balance, end of year | 879,000 | |||||
Total stockholders' equity | $2,197,500 | |||||
Net sales | $9,647,550 | |||||
Interest expense | $58,560 |
Assuming that long-term investments totaled $1,538,000 throughout the year and that total assets were $2,923,000 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 b. Ratio of liabilities to stockholders' equity 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 0.4 6.6 10.0 15.3 51.0Step by Step Solution
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