eBook Question Content Area 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) $1,529,500 Liabilities: Current liabilities $161,000 Note payable, 6%, due in 15 years 805,000 Total liabilities $966,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,449,000 Common stock, $10 par (no change during year) 1,449,000 Retained earnings: Balance, beginning of year $1,546,000 Net income 479,000 $2,025,000 Preferred dividends $57,960 Common dividends 35,040 93,000 Balance, end of year 1,932,000 Total stockholders' equity $4,830,000 Sales $25,429,500 Interest expense $48,300 Assuming that total assets were $5,506,000 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% Check My Work
eBook Question Content Area 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) $1,529,500 Liabilities: Current liabilities $161,000 Note payable, 6%, due in 15 years 805,000 Total liabilities $966,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,449,000 Common stock, $10 par (no change during year) 1,449,000 Retained earnings: Balance, beginning of year $1,546,000 Net income 479,000 $2,025,000 Preferred dividends $57,960 Common dividends 35,040 93,000 Balance, end of year 1,932,000 Total stockholders' equity $4,830,000 Sales $25,429,500 Interest expense $48,300 Assuming that total assets were $5,506,000 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% Check My Work
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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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) $1,529,500 Liabilities: Current liabilities $161,000 Note payable, 6%, due in 15 years 805,000 Total liabilities $966,000 Stockholders' equity :Preferred $4 stock , $100 par (no change during year)$1,449,000 Common stock, $10 par (no change during year) 1,449,000 Retained earnings :Balance, beginning of year $1,546,000 Net income 479,000 $2,025,000 Preferred dividends $57,960 Common dividends 35,040 93,000 Balance, end of year 1,932,000 Total stockholders' equity $4,830,000 Sales $25,429,500 Interest expense $48,300 Assuming that total assets were $5,506,000 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%
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