Question
The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year. Property, plant, and equipment (net) $1,960,800 Liabilities:
The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year.
Property, plant, and equipment (net) | $1,960,800 | ||
Liabilities: | |||
Current liabilities | $164,000 | ||
Mortgage note payable, 896, issued 2003, due 2019 | $817,000 | ||
Total liabilities | $981,000 | ||
Stockholders equity: | |||
Preferred $2 stock, $100 par (no change during year) | $735,750 | ||
Common stock, $10 par (no change during year) | $735,750 | ||
Retained earnings: | |||
Balance, beginning of year | $784,000 | ||
Net income | 321,000 | $1,105,000 | |
Preferred dividends | $14,715 | ||
Common dividends | $109,285 | $124,000 | |
Balance, end of year | $981,000 | ||
Total stockholders equity | $2,452,500 | ||
Net sales | $7,664,525 | ||
Interest expense | $65,360 |
Assuming that long-term investments totaled $1,717,000 throughout the year and those total assets were $3,262,000 at the beginning of the current fiscal year, determine the following.
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.
Step by Step Solution
3.48 Rating (164 Votes )
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below a Parti...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