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) $1,664,000

Liabilities:

Current liabilities $167,000

Mortgage note payable, 8%, issued 2003, due 2019 832,000

Total liabilities $999,000

Stockholders' equity:

Preferred $2 stock, $100 par (no change during year) $1,498,500

Common stock, $10 par (no change during year) 1,498,500

Retained earnings:

Balance, beginning of year $1,598,000

Net income 561,000 $2,159,000

Preferred dividends $29,970

Common dividends 131,030 161,000

Balance, end of year 1,998,000

Total stockholders' equity $4,995,000

Net sales $13,380,900

Interest expense $66,560

Assuming that long-term investments totaled $2,997,000 throughout the year and that total assets were $5,694,000 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 %