Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equity, (d) asset turnover, (e) return total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places. a. Debt ratio b. Ratio of fixed assets to long-term liabilities Ratio of liabilities to stockholders' equity C. %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Seven metrics
The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets.
Property, plant, and equipment (net)
Liabilities:
Current liabilities
Mortgage note payable, 10%, ten-year note issued two years ago
Total liabilities
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year)
Common stock, $10 par (no change during year)
Retained earnings:
Balance, beginning of year
Net income
Preferred dividends
Common dividends
Balance, end of year
Total stockholders' equity
Sales
Check My Work
$1,440,000
566,000
$27,000
179,000
$225,000
1,125,000
$2,006,000
206,000
$1,800,000
$1,350,000
$1,350,000
1,350,000
1,800,000
$4,500,000
$13,614,650
Previous
Transcribed Image Text:Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) Liabilities: Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity Sales Check My Work $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,800,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000 $13,614,650 Previous
Balance, end of year
Total stockholders' equity
Sales
Interest expense
Beginning-of-the-year amounts:
Property, plant, and equipment (net)
Total assets
a.
Retained earnings
Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equity, (d) asset turnover, (e) return
total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places.
Debt ratio
b. Ratio of fixed assets to long-term liabilities
C. Ratio of liabilities to stockholders' equity
d. Asset turnover
e.
Return on total assets
f. Return on stockholders' equity
g. Return on common stockholders' equity
%
%
%
1,800,000
$4,500,000
$13,614,650
%
$141,234
$ 2,925,000
5,557,000
1,440,000
Transcribed Image Text:Balance, end of year Total stockholders' equity Sales Interest expense Beginning-of-the-year amounts: Property, plant, and equipment (net) Total assets a. Retained earnings Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equity, (d) asset turnover, (e) return total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places. Debt ratio b. Ratio of fixed assets to long-term liabilities C. Ratio of liabilities to stockholders' equity d. Asset turnover e. Return on total assets f. Return on stockholders' equity g. Return on common stockholders' equity % % % 1,800,000 $4,500,000 $13,614,650 % $141,234 $ 2,925,000 5,557,000 1,440,000
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