Question
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,
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) $933,600
Liabilities:
Current liabilities $155,000
Note payable, 6%, due in 15 years 778,000
Total liabilities $933,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year) $559,800
Common stock, $10 par (no change during year) 559,800
Retained earnings:
Balance, beginning of year $598,000
Net income 229,000 $827,000
Preferred dividends $11,196
Common dividends 69,404 80,600
Balance, end of year 746,400
total stockholders' equity $1,866,000
Sales $11,461,800 Interest expense $46,680
Assuming that total assets were $2,659,000 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 fill in the blank 1
b. Ratio of liabilities to stockholders' equity fill in the blank 2
c. Asset turnover fill in the blank 3 d. Return on total assets fill in t
4 % e. Return on stockholders equity_________
5 % f. Return on common stockholders' equity _______ 6 %
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