The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year.Property, plant, and equipment (net) $1,448,000Liabilities: Current liabilities $146,000 Note payable, 6%, due in 15 years 724,000 Total liabilities $870,000Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $870,000 Common stock, $10 par (no change during year) 870,000Retained earnings: Balance, beginning of year$928,000 Net income350,000 $1,278,000 Preferred dividends$34,800 Common dividends83,200 118,000 Balance, end of year 1,160,000Total stockholders' equity $2,900,000Sales $15,437,100Interest expense $43,440Assuming that total assets were $3,581,000 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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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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The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year.

Property, plant, and equipment (net)				$1,448,000
Liabilities:
	Current liabilities		$146,000
	Note payable, 6%, due in 15 years		724,000
	Total liabilities				$870,000
Stockholders' equity:
	Preferred $4 stock, $100 par (no change during year)				$870,000
	Common stock, $10 par (no change during year)				870,000
Retained earnings:
	Balance, beginning of year	$928,000
	Net income	350,000	$1,278,000
	Preferred dividends	$34,800
	Common dividends	83,200	118,000
	Balance, end of year				1,160,000
Total stockholders' equity				$2,900,000
Sales				$15,437,100
Interest expense				$43,440

Assuming that total assets were $3,581,000 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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