Question

Need d, e, f, and g

Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assumim Property, plant, and equipment (net) $1,676,700 Liabilities: Current liabilities $147,000 Mortgage note payable, 10%, ten-year note issued two years ago 729,000 Total liabilities $876,000 Stockholders' equity: Preferred $4 stock. $100 par (no change during year) $657.000 Common stock, $10 par (no change during year) 657,000 Retained earnings: Balance, beginning of year $700.000 Net income 304,000 $1,004.000 Preferred dividends $26.280 Common dividends 101.720 128,000 Balance, end of year 876,000 Total stockholders' equity $2,190,000 Sales $9,467,250 $75,667 Interest expense Beginning-of-the-year amounts: $ 1,533.000 Property, plant, and equipment (net) Total assets 2,913.000 Retained earnings 700.000 Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equit Debt ratio 28.57 a. b. Ratio of fixed assets to long-term liabilities 2.3 Ratio of liabilities to stockholders' equity 0.4 d. Asset turnover 3.25 e. Return on total assets Return on stockholders' equity х % f. 13.88 g. Return on common stockholders' equity х 4 0.46 ere to search

Answer 1

Asset tunovel Net Sales Avg. Total Assets Total Adet = $2,190,000 + $ 876,000 : $ 3,066,000 Avg. total Assete : $3,0661000+ $ 2913,000 $ 2,989,500 Asset tunovel 2 $ 9,467,250 - $2.989,500 3.17

Net income Reteun on total Anet - Avg. tolal Agelo - $ 804000 $ 2,989,500 s 10179

f) Retun on shale holden equity : Net income Aug. Common share holder equile Equity beginning Equity Ending $ 667,000 + $ 700.000 – $1,357,000 $6541000+ 876.000 = $ 1,5331000 Akelage = $1,3571000+ €1,583,000 $1,445,000 2 Retun on share hodes equites $ 304,000 & 1,445,000 - 21.04% g) Retun on Common shareholdeu equity = Net income - Puef. Dividend Arg. Common shaw holder Equity = $804000 - $26,270 $ 1, 445,000 $ 277,720 $ 1,445,000 19.22%