Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following data were taken from the financial statements of Heston Enterprises Inc. for the current fiscal year. Assume that long-term investments totaled $2,100,000 throughout
The following data were taken from the financial statements of Heston Enterprises Inc. for the current fiscal year. Assume that long-term investments totaled $2,100,000 throughout the year and that total assets were $4,000,000 at the beginning of the year. Property, plant, and equipment (net).......$1,600,000 Liabilities: Current liabilities..........................$200,000 Mortgage note payable, 10%, issued 1999, due 2015.......................................1,000,000 Total liabilities.........$1,200,000 Stockholders' equity: Preferred $10 stock, $100 par (no change during year).......................$1,000,000 Common stock, $10 par (no change during year)..1,000,000 Retained earnings: Balance, beginning of year.....$800,000 Net income......................400,000 $1,200,000 Preferred dividends.............$100,000 Common dividends................100,000 200,000 Balance, and of year.............................1,000,000 Total stockholders' equity $3,000,000 net sales........................$10,000,000 Interest expense.................$100,000 Determine the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders' equity, (c) ratio of net sales to assets, (d) rate earned on total assets, (e) rate earned on stockholders' equity, and (f) rate earned on common stockholders' equity. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities: b. Ratio of liabilities to stockholders' equity: c. Ratio of net sales to assets: d. Rate earned on total assets: e. Rate earned on stockholders' equity: f. Rate earned on common stockholders' equity
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