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The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,826,200 Liabilities: Current liabilities $160,000 Note payable, 6%, due in 15 years 794,000 Total liabilities $954,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $715,500 Common stock, $10 par (no change during year) 715,500 Retained earnings: Balance, beginning of year $764,000 Net income 359,000 $1,123,000 Preferred dividends $14,310 Common dividends 154,690 169,000 Balance, end of year 954,000 Total stockholders' equity $2,385,000 Sales $16,603,050 Interest expense $47,640 Assuming that total assets were $3,172,000 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 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

The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,826,200 Liabilities: Current liabilities $160,000 Note payable, 6%, due in 15 years 794,000 Total liabilities $954,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $715,500 Common stock, $10 par (no change during year) 715,500 Retained earnings: Balance, beginning of year $764,000 Net income 359,000 $1,123,000 Preferred dividends $14,310 Common dividends 154,690 169,000 Balance, end of year 954,000 Total stockholders' equity $2,385,000 Sales $16,603,050 Interest expense $47,640 Assuming that total assets were $3,172,000 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 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

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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### Financial Data: Loveseth Inc. #### Property, Plant, and Equipment (Net) - **Value:** $1,826,200 #### Liabilities - **Current Liabilities:** $160,000 - **Note Payable:** 6%, due in 15 years: $794,000 - **Total Liabilities:** $954,000 #### Stockholders' Equity - **Preferred $2 Stock, $100 Par:** $715,500 - **Common Stock, $10 Par:** $715,500 #### Retained Earnings - **Balance, Beginning of Year:** $764,000 - **Net Income:** $359,000; **Total:** $1,123,000 - **Less: Preferred Dividends:** $14,310 - **Less: Common Dividends:** $154,690 - **Balance, End of Year:** $954,000 #### Total Stockholders' Equity - **Total:** $2,385,000 #### Additional Financial Information - **Sales:** $16,603,050 - **Interest Expense:** $47,640 ### Calculations Assuming starting total assets of $3,172,000 for the current fiscal year, determine the following: 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:** ### Instructions - When required, round to one decimal place. This information can serve as a detailed financial overview of Loveseth Inc. for the current fiscal year.
Transcribed Image Text:### Financial Data: Loveseth Inc. #### Property, Plant, and Equipment (Net) - **Value:** $1,826,200 #### Liabilities - **Current Liabilities:** $160,000 - **Note Payable:** 6%, due in 15 years: $794,000 - **Total Liabilities:** $954,000 #### Stockholders' Equity - **Preferred $2 Stock, $100 Par:** $715,500 - **Common Stock, $10 Par:** $715,500 #### Retained Earnings - **Balance, Beginning of Year:** $764,000 - **Net Income:** $359,000; **Total:** $1,123,000 - **Less: Preferred Dividends:** $14,310 - **Less: Common Dividends:** $154,690 - **Balance, End of Year:** $954,000 #### Total Stockholders' Equity - **Total:** $2,385,000 #### Additional Financial Information - **Sales:** $16,603,050 - **Interest Expense:** $47,640 ### Calculations Assuming starting total assets of $3,172,000 for the current fiscal year, determine the following: 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:** ### Instructions - When required, round to one decimal place. This information can serve as a detailed financial overview of Loveseth Inc. for the current fiscal year.
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