The following data were taken from the financial statements of Bendax Enterprises Inc. for the current fiscal year. Assuming that long-term investments totaled $240,000 throughout the year and that total assets were $2,525,000 at the beginning of the year, determine the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders' equity, (c) ratio of net sales to assets, (d) rate earned on total assets, (e) rate earned on stockholders' equity, and (f) rate earned on common stockholders' equity. Round to one decimal place.
|
Property, plant, and equipment (net)
|
|
|
$1,200,000
|
|
Liabilities:
|
|
|
|
|
Current liabilities
|
|
$60,000
|
|
|
Mortgage note payable, 8%, issued 1997, due 2013
|
|
825,000
|
|
|
Total liabilities
|
|
|
$885,000
|
|
Stockholders' equity:
|
|
|
|
|
Preferred $9 stock, $100 par (no change during year)
|
|
|
$250,000
|
|
Common stock, $20 par (no change during year)
|
|
|
800,000
|
|
Retained earnings:
|
|
|
|
|
Balance, beginning of year
|
$600,000
|
|
|
|
Net income
|
216,000
|
$816,000
|
|
|
Preferred dividends
|
$22,500
|
|
|
|
Common dividends
|
57,600
|
80,100
|
|
|
Balance, end of year
|
|
|
735,900
|
|
Total stockholders' equity
|
|
|
$1,785,900
|
|
Net sales
|
|
|
$3,600,000
|
|
Interest expense
|
|
|
$66,000
|