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) $1,689,600
Liabilities:
Current liabilities $210,000
Mortgage note payable, 10%, ten-year note issued two years ago 1,056,000
Total liabilities $1,266,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year) $949,500
Common stock, $10 par (no change during year) 949,500
Retained earnings:
Balance, beginning of year $1,012,000
Net income 391,000 $1,403,000
Preferred dividends $37,980
Common dividends 99,020 137,000
Balance, end of year 1,266,000
Total stockholders' equity $3,165,000
Sales $9,047,200
Interest expense $97,160
Beginning-of-the-year amounts:
Property, plant, and equipment (net) $ 2,216,000
Total assets 4,209,000
Retained earnings 1,012,000

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 %
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 %
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

Students also viewed these Accounting questions