Beginning of the current fiscal year

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Reference no: EM13916589

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)				$2,169,200
Liabilities:
	Current liabilities		$196,000
	Mortgage note payable, 8%, issued 2003, due 2019		986,000
	Total liabilities			$1,182,000
Stockholders' equity:
	Preferred $2 stock, $100 par (no change during year)			$1,773,000
	Common stock, $10 par (no change during year)			1,773,000
Retained earnings:
	Balance, beginning of year	$1,892,000
	Net income	774,000	$2,666,000
	Preferred dividends	$35,460
	Common dividends	266,540	302,000
	Balance, end of year			2,364,000
Total stockholders' equity				$5,910,000
Net sales				$21,558,400
Interest expense				$78,880

Assuming that long-term investments totaled $3,546,000 throughout the year and that total assets were $6,737,000 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 net sales to assets	_
d. Rate earned on total assets	_%
e. Rate earned on stockholders' equity	_%
f. Rate earned on common stockholders' equity	_%

Reference no: EM13916589

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