Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no

Seven metrics

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditors For Stock Brokers

Authors: National Institute Of Securities Markets (NISM)

1st Edition

9350717581, 978-9350717585

More Books

Students also viewed these Accounting questions