Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets.
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) $1,757,200 Liabilities: Current liabilities $154,000 Mortgage note payable, 10%, ten-year note issued two years ago 764,000 Total abilities $918,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: $918,000 918,000 > Balance, beginning of year $980,000 Net Income 403,000 $1,383,000 Preferred dividends $18,360 Common dividends 140,640 159,000 Balance, end of year 1,224,000 Total stockholders' equity $3,060,000 Sales $9,447,500 Interest expense $101,205 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 1,989,000 Total assets 3.779.000 Net income 403,000 $1,383,000 Preferred dividends $18,360 140,640 159,000 Common dividends Balance, end of year Total stockholders' equity 1,224,000 $3,060,000 Sales $9,447,500 Interest expense $101,205 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 1,989,000 Total assets 3,779,000 Retained earnings 980,000 Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders" (9) return on common stockholders' equity. Round to two decimal places. a. Debt ratio 23.1 % b. Ratio of fixed assets to long-term liabilities Ratio of liabilities to stockholders' equity 0.30 d. Asset turnover e. Return on total assets f. Return on stockholders' equity 9. Return on common stockholders' equity C. IIII. % % %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started