determine the following. 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 %
determine the following. 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 %
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 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
Property, plant, and equipment (net) | $3,200,000 | |||||
Liabilities: | ||||||
Current liabilities | $1,000,000 | |||||
Note payable, 6%, due in 15 years | 2,000,000 | |||||
Total liabilities | $3,000,000 | |||||
Stockholders’ equity: | ||||||
$1,000,000 | ||||||
Common stock, $10 par (no change during year) | 2,000,000 | |||||
Balance, beginning of year | $1,570,000 | |||||
Net income | 930,000 | |||||
Preferred dividends | (100,000) | |||||
Common dividends | (400,000) | |||||
Balance, end of year | 2,000,000 | |||||
Total stockholders’ equity | $5,000,000 | |||||
Sales | $18,900,000 | |||||
Interest expense | $120,000 |
Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.
a. Ratio of fixed assets to long-term liabilities | fill in the blank 1 |
b. Ratio of liabilities to |
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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