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Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and $787,800 equipment (net) Liabilities: Current liabilities $120,000 Note payable, 6%, due in 15 years 606,000 Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $435,600 year) Common stock, $10 par 435,600 (no change during year) Retained earnings: Balance, beginning of year $464,000 Net income 175,000 $639,000 Preferred dividends $17,424 Common dividends 40,776 58,200 Balance, end of year 580,800 Total stockholders' equity $1,452,000 Sales $13,802,750

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and $787,800 equipment (net) Liabilities: Current liabilities $120,000 Note payable, 6%, due in 15 years 606,000 Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $435,600 year) Common stock, $10 par 435,600 (no change during year) Retained earnings: Balance, beginning of year $464,000 Net income 175,000 $639,000 Preferred dividends $17,424 Common dividends 40,776 58,200 Balance, end of year 580,800 Total stockholders' equity $1,452,000 Sales $13,802,750

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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please answer only last three subparts thnku

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and $787,800 equipment (net) Liabilities: Current liabilities $120,000 Note payable, 6%, due in 606,000 15 years Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $435,600 year) Common stock, $10 par 435,600 (no change during year) Retained earnings: Balance, beginning of year $464,000 Net income 175,000 $639,000 Preferred dividends $17,424 Common dividends 40,776 58,200 Balance, end of year 580,800 Total stockholders' equity $1,452,000 Sales $13,802,750 Interest expense $36,360 Assuming that total assets were $2,069,0000 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 b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity %
Transcribed Image Text:Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and $787,800 equipment (net) Liabilities: Current liabilities $120,000 Note payable, 6%, due in 606,000 15 years Total liabilities $726,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $435,600 year) Common stock, $10 par 435,600 (no change during year) Retained earnings: Balance, beginning of year $464,000 Net income 175,000 $639,000 Preferred dividends $17,424 Common dividends 40,776 58,200 Balance, end of year 580,800 Total stockholders' equity $1,452,000 Sales $13,802,750 Interest expense $36,360 Assuming that total assets were $2,069,0000 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 b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity %
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