Six Measures of Solvency or Profitability
The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year.
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Property, plant, and equipment (net)
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$2,169,200
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Liabilities:
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Current liabilities
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$196,000
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Mortgage note payable, 8%, issued 2003, due 2019
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986,000
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Total liabilities
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$1,182,000
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Stockholders' equity:
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Preferred $2 stock, $100 par (no change during year)
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$1,773,000
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Common stock, $10 par (no change during year)
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1,773,000
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Retained earnings:
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Balance, beginning of year
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$1,892,000
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Net income
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774,000
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$2,666,000
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Preferred dividends
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$35,460
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Common dividends
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266,540
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302,000
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Balance, end of year
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2,364,000
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Total stockholders' equity
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$5,910,000
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Net sales
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$21,558,400
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Interest expense
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$78,880
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Assuming that long-term investments totaled $3,546,000 throughout the year and that total assets were $6,737,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
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a. Ratio of fixed assets to long-term liabilities
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_
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b. Ratio of liabilities to stockholders' equity
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_
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c. Ratio of net sales to assets
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_
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d. Rate earned on total assets
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_%
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e. Rate earned on stockholders' equity
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_%
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f. Rate earned on common stockholders' equity
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_%
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