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Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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 1.9 b. Ratio of liabilities to stockholders' equity 0.4 c. Asset turnover 5.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity 0%

Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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 1.9 b. Ratio of liabilities to stockholders' equity 0.4 c. Asset turnover 5.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity 0%

FINANCIAL ACCOUNTING
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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I need help solving for d-f.

Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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 1.9 b. Ratio of liabilities to stockholders' equity 0.4 c. Asset turnover 5.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity 0%
Transcribed Image Text:Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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 1.9 b. Ratio of liabilities to stockholders' equity 0.4 c. Asset turnover 5.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity 0%
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