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Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property,
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 $787,800 equipment (net) Liabilities: Current liabilities $120,000 Note payable, 6%, due in 606,000 15 years Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $464,000 $435,600 435,600 Net income 175,000 $639,000 Preferred dividends $17,424 Common dividends 40,776 58,200 Balance, end of year Total stockholders' equity 580,800 $1,452,000 Sales $13,802,750 $36,360 Interest expense Assuming that total assets were $2,069,000 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. Asset turnover d. Return on total assets e. Return on stockholders' equity f. Return on common stockholders' equity % % %
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