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The X's are wrong. I cant seem to get them right even after help with tutors. If someone could please help me. Six Measures of

The X's are wrong. I cant seem to get them right even after help with tutors. If someone could please help me.

Six Measures of Solvency or Profitability

The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year.

Property, plant, and equipment (net) $1,327,700
Liabilities:
Current liabilities $155,000
Mortgage note payable, 8%, issued 2005, due 2021 781,000
Total liabilities $936,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year) $936,000
Common stock, $10 par (no change during year) 936,000
Retained earnings:
Balance, beginning of year $998,000
Net income 405,000 $1,403,000
Preferred dividends $18,720
Common dividends 136,280 155,000
Balance, end of year 1,248,000
Total stockholders' equity $3,120,000
Sales $9,247,200
Interest expense $62,480

Assuming that long-term investments totaled $2,028,000 throughout the year and that total assets were $3,853,000 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. Ratio of sales to assets
d. Rate earned on total assets %
e. Rate earned on stockholders' equity %
f. Rate earned on common stockholders' equity %

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a. Divide property, plant and equipment (net) by long-term liabilities.

b. Divide total liabilities by total stockholders'equity.

c. Divide sales by average total assets, excluding long-term investments. Average total assets = (Beginning total assets + Ending total assets) 2. To find ending total assets, use the accounting equation and substitute ending liabilities + stockholders'equity for the amount.

d. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2. To find ending total assets, use the accounting equation and substitute ending liabilities + stockholders'equity for the amount.

e. Divide net income by average total stockholders'equity. Average total stockholders'equity = (Beginning total stockholders'equity + Ending total stockholders'equity) 2.

f. Divide net income minus preferred dividends by average common stockholders'equity. Common stockholders'equity = Common stock + Retained earnings. Average common stockholders'equity = (Beginning common stockholders'equity + Ending common stockholders'equity) 2.

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