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) $1,390,200
Liabilities:
Current liabilities $133,000
Mortgage note payable, 10%, ten-year note issued two years ago 662,000
Total liabilities $795,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year) $1,192,500
Common stock, $10 par (no change during year) 1,192,500
Retained earnings:
Balance, beginning of year $1,272,000
Net income 473,000 $1,745,000
Preferred dividends $23,850
Common dividends 131,150 (155,000)
Balance, end of year 1,590,000
Total stockholders' equity $3,975,000
Sales $12,689,600
Interest expense $117,677
Beginning-of-the-year amounts:
Property, plant, and equipment (net) $ 2,385,000
Total assets 4,532,000
Retained earnings 1,272,000

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 (This is right) 16.67%
b. Ratio of fixed assets to long-term liabilities
c. Ratio of liabilities to stockholders' equity (This is right) .2
d. Asset turnover
e. Return on total assets %
f. Return on stockholders' equity %
g. Return on common stockholders' equity %

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

Step: 3

blur-text-image

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

Financial And Accounting Principles In Islamic Finance

Authors: Samir Alamad

1st Edition

3030162982, 9783030162986

More Books

Students also viewed these Accounting questions