Six Measures of Solvency or Profitability

The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year.

Property, plant, and equipment (net)$1,497,000Liabilities:Current liabilities$199,000Note payable, 6%, due in 15 years998,000Total liabilities$1,197,000Stockholders' equity:Preferred $2 stock, $100 par (no change during year)$1,197,000Common stock, $10 par (no change during year)1,197,000Retained earnings:Balance, beginning of year$1,276,000Net income546,000$1,822,000Preferred dividends$23,940Common dividends202,060226,000Balance, end of year1,596,000Total stockholders' equity$3,990,000Sales$24,781,750Interest expense$59,880

Assuming that total assets were $4,928,000 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 liabilitiesfill in the blank 1b. Ratio of liabilities to stockholders' equityfill in the blank 2c. Asset turnoverfill in the blank 3d. Return on total assetsfill in the blank 4%e. Return on stockholders equityfill in the blank 5%f. Return on common stockholders' equityfill in the blank 6%

Check My Work