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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3881c1a6-f287-42d9-8e45-c704abc4145f%2F54614166-4000-4576-b86c-bffdac00a1b9%2Fq68ntqt_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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