Question
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) $914,400 Liabilities: Current liabilities $153,000 Mortgage note payable, 10%, ten-year note issued two years ago 762,000 Total liabilities $915,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $686,250 Common stock, $10 par (no change during year) 686,250 Retained earnings: Balance, beginning of year $732,000 Net income 300,000 $1,032,000 Preferred dividends $13,725 Common dividends 103,275 117,000 Balance, end of year 915,000 Total stockholders' equity $2,287,500 Sales $8,823,250 Interest expense $74,670 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 1,601,000 Total assets 3,042,000 Retained earnings 732,000
Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders equity, (d) asset turnover, (e) return on total assets, (f) return on stockholders equity, and (g) return on common stockholders' equity. Round to two decimal places.
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