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) $1,779,000 Liabilities: Current liabilities $236,000 Mortgage note payable, 10%, ten-year note issued two years ago 1,186,000 Total liabilities $1,422,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,422,000 Common stock, $10 par (no change during year) 1,422,000 Retained earnings: Balance, beginning of year $1,516,000 Net income 485,000 $2,001,000 Preferred dividends $56,880 Common dividends 48,120 105,000 Balance, end of year 1,896,000 Total stockholders' equity $4,740,000 Sales $14,927,700 Interest expense $121,808 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 3,081,000 Total assets 5,854,000 Retained earnings 1,516,000 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 on total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal plas a. 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 9. Return on common stockholders' equity
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) $1,779,000 Liabilities: Current liabilities $236,000 Mortgage note payable, 10%, ten-year note issued two years ago 1,186,000 Total liabilities $1,422,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,422,000 Common stock, $10 par (no change during year) 1,422,000 Retained earnings: Balance, beginning of year $1,516,000 Net income 485,000 $2,001,000 Preferred dividends $56,880 Common dividends 48,120 105,000 Balance, end of year 1,896,000 Total stockholders' equity $4,740,000 Sales $14,927,700 Interest expense $121,808 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 3,081,000 Total assets 5,854,000 Retained earnings 1,516,000 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 on total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal plas a. 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 9. Return on common stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
$1,779,000
Liabilities:
Current liabilities
$236,000
Mortgage note payable, 10%, ten-year note issued two years ago
1,186,000
Total liabilities
$1,422,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$1,422,000
Common stock, $10 par (no change during year)
1,422,000
Retained earnings:
Balance, beginning of year
$1,516,000
Net income
485,000
$2,001,000
Preferred dividends
$56,880
Common dividends
48,120
105,000
Balance, end of year
1,896,000
Total stockholders' equity
$4,740,000
Sales
$14,927,700
Interest expense
$121,808
Beginning-of-the-year amounts:
Property, plant, and equipment (net)
$ 3,081,000
Total assets
5,854,000
Retained earnings
1,516,000
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 on 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.
d. Asset turnover
e. Return on total assets
%
f.
Return on stockholders' equity
%
g. Return on common stockholders' equity
%
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