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The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,128,800 Liabilities: Current
The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year.
Property, plant, and equipment (net) | $1,128,800 | |||||
Liabilities: | ||||||
Current liabilities | $134,000 | |||||
Note payable, 6%, due in 15 years | 664,000 | |||||
Total liabilities | $798,000 | |||||
Stockholders' equity: | ||||||
Preferred $2 stock, $100 par (no change during year) | $478,800 | |||||
Common stock, $10 par (no change during year) | 478,800 | |||||
Retained earnings: | ||||||
Balance, beginning of year | $510,000 | |||||
Net income | 207,000 | $717,000 | ||||
Preferred dividends | $9,576 | |||||
Common dividends | 69,024 | 78,600 | ||||
Balance, end of year | 638,400 | |||||
Total stockholders' equity | $1,596,000 | |||||
Sales | $14,704,200 | |||||
Interest expense | $39,840 |
Assuming that total assets were $2,274,000 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 | fill in the blank 1 |
b. Ratio of liabilities to stockholders' equity | fill in the blank 2 |
c. Asset turnover | fill in the blank 3 |
d. Return on total assets | fill in the blank 4% |
e. Return on stockholders equity | fill in the blank 5% |
f. Return on common stockholders' equity | fill in the blank 6% |
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) $1,128,800 Liabilities: Current liabilities $134,000 Note payable, 6%, due in 15 years 664,000 Total liabilities $798,000 $478,800 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year 478,800 $510,000 Net income 207,000 $717,000 Preferred dividends $9,576 Common dividends 69,024 78,600 638,400 Balance, end of year Total stockholders' equity $1,596,000 Sales $14,704,200 Interest expense $39,840 Assuming that total assets were $2,274,000 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 %
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