esFondren Machine Tools has total assets of $3,420,000 and current assets of $803,000. It turns over its fixed assets 1.4 times peryear. Its return on sales is 5.4 percent. It has $1,630,000 of debt.What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2decimal places.)Return on stockholders' equity%

Return on stockholders' equity represents the earnings of the company held in hands of the…

Answered: Fondren Machine Tools has total assets…

Fondren Machine Tools has total assets of $3,420,000 and current assets of $803,000. It turns over its fixed assets 1.4 times per year. Its return on sales is 5.4 percent. It has $1,630,000 of debt.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

es
Fondren Machine Tools has total assets of $3,420,000 and current assets of $803,000. It turns over its fixed assets 1.4 times per
year. Its return on sales is 5.4 percent. It has $1,630,000 of debt.
What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2
decimal places.)
Return on stockholders' equity
%

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