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.$1,800,000Property, plant, and equipment (net)Liabilities:Current liabilities.Mortgage note payable, 10%, ten-year note issued two years agoTotal liabilitiesStockholders' equity:Preferred $2 stock, $100 par (no change during year)Common stock, $10 par (no change during year)Retained earnings:Balance, beginning of yearNet incomePreferred dividendsCommon dividendsBalance, end of yearTotal stockholders' equity.Sales$1,440,000566,000$27,000179,000$225,0001,125,000$2,006,000206,000$1,350,000$1,350,0001,350,0001,800,000$4,500,000$13,614,650 Total stockholders equitySalesInterest expenseBeginning-of-the-year amounts:Property, plant, and equipment (net)a. Debt ratiob. Ratio of fixed assets to long-term liabilitiesRatio of liabilities to stockholders' equityC.Total assets$ 2,925,0005,557,000Retained earnings1,440,000Determine 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 ontotal assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places.d. Asset turnovere. Return on total assets.f.Return on stockholders' equityg. Return on common stockholders' equityFeedback23.07 ✓ %1.6 ✓0.30%%$100,000%$13,614,650$141,234

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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. $1,800,000 Property, plant, and equipment (net) Liabilities: Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) ↑ Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000

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. $1,800,000 Property, plant, and equipment (net) Liabilities: Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) ↑ Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000

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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Question

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.
$1,800,000
Property, plant, and equipment (net)
Liabilities:
Current liabilities.
Mortgage note payable, 10%, ten-year note issued two years ago
Total liabilities
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year)
Common stock, $10 par (no change during year)
Retained earnings:
Balance, beginning of year
Net income
Preferred dividends
Common dividends
Balance, end of year
Total stockholders' equity.
Sales
$1,440,000
566,000
$27,000
179,000
$225,000
1,125,000
$2,006,000
206,000
$1,350,000
$1,350,000
1,350,000
1,800,000
$4,500,000
$13,614,650

Total stockholders equity
Sales
Interest expense
Beginning-of-the-year amounts:
Property, plant, and equipment (net)
a. Debt ratio
b. Ratio of fixed assets to long-term liabilities
Ratio of liabilities to stockholders' equity
C.
Total assets
$ 2,925,000
5,557,000
Retained earnings
1,440,000
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.
d. Asset turnover
e. Return on total assets.
f.
Return on stockholders' equity
g. Return on common stockholders' equity
Feedback
23.07 ✓ %
1.6 ✓
0.30
%
%
$100,000
%
$13,614,650
$141,234

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