Question

The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets.

Property, plant, and equipment (net)						$1,662,900
Liabilities:
	Current liabilities			$144,000
	Mortgage note payable, 10%, ten-year note issued two years ago			723,000
	Total liabilities					$867,000
Stockholders' equity:
	Preferred $4 stock, $100 par (no change during year)					$650,250
	Common stock, $10 par (no change during year)					650,250
Retained earnings:
	Balance, beginning of year	$694,000
	Net income	258,000		$952,000
	Preferred dividends	$26,010
	Common dividends	58,990		85,000
	Balance, end of year					867,000
Total stockholders' equity						$2,167,500
Sales						$6,776,225
Interest expense						$64,504
Beginning-of-the-year amounts:
	Property, plant, and equipment (net)					$ 1,517,000
	Total assets					2,883,000
	Retained earnings					694,000

Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders’ equity, (d) asset turnover, (e) return on total assets, (f) return on stockholders’ equity, and (g) return on common stockholders' equity. Round to two decimal places.

a.	Debt ratio	%
b.	Ratio of fixed assets to long-term liabilities
c.	Ratio of liabilities to stockholders’ equity
d.	Asset turnover
e.	Return on total assets	%
f.	Return on stockholders’ equity	%
g.	Return on common stockholders’ equity	%

Answer 1