Assuming that total assets were $5,660,000 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
Assuming that total assets were $5,660,000 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
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 21E
Related questions
Question
![Assuming that total assets were $5,660,000 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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6daaa273-2c3b-4c6b-ba27-5f0781235766%2F2d99dff5-367e-4f16-b0ce-1ef31ae26afe%2Fuxvv1d_processed.png&w=3840&q=75)
Transcribed Image Text:Assuming that total assets were $5,660,000 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
%
![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)
$1,405,900
Liabilities:
Current liabilities
$166,000
Note payable, 6%, due in 15 years
827,000
Total liabilities
$993,000
Stockholders' equity:
$1,489,500
Preferred $2 stock, $100 par (no change during year)
Common stock, $10 par (no change during year)
1,489,500
Retained earnings:
Balance, beginning of year
Net income
Preferred dividends
Common dividends
Balance, end of year
1,986,000
Total stockholders' equity
$4,965,000
Sales
$34,854,000
Interest expense
$49,620
$1,588,000
576,000 $2,164,000
$29,790
148,210
178,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6daaa273-2c3b-4c6b-ba27-5f0781235766%2F2d99dff5-367e-4f16-b0ce-1ef31ae26afe%2Fkss6eru_processed.png&w=3840&q=75)
Transcribed Image Text: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)
$1,405,900
Liabilities:
Current liabilities
$166,000
Note payable, 6%, due in 15 years
827,000
Total liabilities
$993,000
Stockholders' equity:
$1,489,500
Preferred $2 stock, $100 par (no change during year)
Common stock, $10 par (no change during year)
1,489,500
Retained earnings:
Balance, beginning of year
Net income
Preferred dividends
Common dividends
Balance, end of year
1,986,000
Total stockholders' equity
$4,965,000
Sales
$34,854,000
Interest expense
$49,620
$1,588,000
576,000 $2,164,000
$29,790
148,210
178,000
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