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) $1,680,000 Liabilities: Current liabilities $168,000 Mortgage note payable, 10%, ten-year note issued two years ago 840,000 Total liabilities $1,008,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,008,000 Common stock, $10 par (no change during year) 1,008,000 Retained earnings: Balance, beginning of year $1,076,000 Net income 385,000 $1,461,000 Preferred dividends $40,320 Common dividends 76,680 117,000 Balance, end of year 1,344,000 Total stockholders' equity $3,360,000 Sales $12,242,500 Interest expense $96,267 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 2,184,000 Total assets 4,150,000 Retained earnings 1,076,000 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 c. Ratio of liabilities to stockholders’ equity d. Asset turnover e. Return on total assets % f. Return on stockholders’ equity % g. 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) $1,680,000 Liabilities: Current liabilities $168,000 Mortgage note payable, 10%, ten-year note issued two years ago 840,000 Total liabilities $1,008,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,008,000 Common stock, $10 par (no change during year) 1,008,000 Retained earnings: Balance, beginning of year $1,076,000 Net income 385,000 $1,461,000 Preferred dividends $40,320 Common dividends 76,680 117,000 Balance, end of year 1,344,000 Total stockholders' equity $3,360,000 Sales $12,242,500 Interest expense $96,267 Beginning-of-the-year amounts: Property, plant, and equipment (net) $ 2,184,000 Total assets 4,150,000 Retained earnings 1,076,000 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 c. Ratio of liabilities to stockholders’ equity d. Asset turnover e. Return on total assets % f. Return on stockholders’ equity % g. Return on common stockholders’ equity %
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...
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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) | $1,680,000 | |||||
Liabilities: | ||||||
Current liabilities | $168,000 | |||||
Mortgage note payable, 10%, ten-year note issued two years ago | 840,000 | |||||
Total liabilities | $1,008,000 | |||||
Stockholders' equity: | ||||||
$1,008,000 | ||||||
Common stock, $10 par (no change during year) | 1,008,000 | |||||
Balance, beginning of year | $1,076,000 | |||||
Net income | 385,000 | $1,461,000 | ||||
Preferred dividends | $40,320 | |||||
Common dividends | 76,680 | 117,000 | ||||
Balance, end of year | 1,344,000 | |||||
Total stockholders' equity | $3,360,000 | |||||
Sales | $12,242,500 | |||||
Interest expense | $96,267 | |||||
Beginning-of-the-year amounts: | ||||||
Property, plant, and equipment (net) | $ 2,184,000 | |||||
Total assets | 4,150,000 | |||||
Retained earnings | 1,076,000 |
Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to
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 | % |
g. | Return on common stockholders’ equity | % |
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