Six measures of solvency or profitability

Reference no: EM131811900

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year.

Property, plant, and equipment (net) $1,140,700

Liabilities: Current liabilities $133,000

Mortgage note payable, 8%, issued 2005, due 2021 671,000

Total liabilities $804,000

Stockholders' equity: Preferred $2 stock, $100 par (no change during year)

$603,000 Common stock, $10 par (no change during year)

603,000 Retained earnings:

Balance, beginning of year $644,000

Net income 296,000 $940,000

Preferred dividends $12,060

Common dividends 123,940 136,000

Balance, end of year 804,000

Total stockholders' equity $2,010,000

Sales $8,419,950

Interest expense $53,680

Assuming that long-term investments totaled $1,407,000 throughout the year and that total assets were $2,673,000 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. Ratio of sales to assets

d. Rate earned on total assets

e. Rate earned on stockholders' equity

f. Rate earned on common stockholders' equity

Reference no: EM131811900

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