The following data were taken from the financial statements

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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

Reference no: EM13574820

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