1. Business
  2. Accounting
  3. six measures of solvency or profitability the following data were...

Question: six measures of solvency or profitability the following data were...

Question details

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) $1,173,200
Liabilities:
Current liabilities $167,000
Mortgage note payable, 8%, issued 2005, due 2021 838,000
Total liabilities $1,005,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year) $1,005,000
Common stock, $10 par (no change during year) 1,005,000
Retained earnings:
Balance, beginning of year $1,072,000
Net income 391,000 $1,463,000
Preferred dividends $20,100
Common dividends 102,900 123,000
Balance, end of year 1,340,000
Total stockholders' equity $3,350,000
Sales $13,442,000
Interest expense $67,040

Assuming that long-term investments totaled $2,178,000 throughout the year and that total assets were $4,137,000 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 %
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution