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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, 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) $3,040,000 Liabilities: Current liabilities $1,200,000 Note payable, 6%, due in 15 years 1,600,000 Total liabilities $2,800,000 Stockholders' equity: Preferred $10 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $800,000 1,600,000 $1,072,000 Net income 928,000 $2,000,000 Preferred dividends $80,000 Common dividends 320,000 400,000 Balance, end of year 1,600,000 Total stockholders' equity $4,000,000 Sales $17,920,000 Interest expense 596,000 0.7 Assuming that total assets were $5,000,000 at the beginning of the current fiscal year, determine the following: Round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities 1.9 b. Ratio of liabilities to stockholders' equity C. Asset turnover 2.8 d. Return on total assets X % e. Return on stockholders' equity 38.7 X % f. Return on common stockholders' equity X % 20.5 26.5
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