Six Measures of Solvency or Profitability

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

Assuming that total assets were $3,661,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place.eBook

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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, and equipment (net)					$1,192,100
Liabilities:
	Current liabilities			$184,000
	Note payable, 6%, due in 15 years			917,000
	Total liabilities					$1,101,000
Stockholders' equity:

Preferred $2 stock, $100 par (no change during year)					$825,750
	Common stock, $10 par (no change during year)					825,750
Retained earnings:
	Balance, beginning of year	$880,000
	Net income	403,000		$1,283,000
	Preferred dividends	$16,515
	Common dividends	165,485		182,000
	Balance, end of year					1,101,000
Total stockholders' equity					$2,752,500
Sales					$17,283,350
Interest expense					$55,020

Assuming that total assets were $3,661,000 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