Reference no: EM131784687
Question - The following data were taken from the financial statements of Heston Enterprises Inc. for the current fiscal year. Assume that long-term investments totaled $2,100,000 throughout the year and that total assets were $4,000,000 at the beginning of the year.
Property, plant, and equipment (net).......$1,600,000
Liabilities:
Current liabilities..........................$200,000
Mortgage note payable, 10%, issued 1999, due 2015.......................................1,000,000
Total liabilities.........$1,200,000
Stockholders' equity:
Preferred $10 stock, $100 par (no change during year).......................$1,000,000
Common stock, $10 par (no change during year)..1,000,000
Retained earnings:
Balance, beginning of year.....$800,000
Net income......................400,000 $1,200,000
Preferred dividends.............$100,000
Common dividends................100,000 200,000
Balance, and of year.............................1,000,000
Total stockholders' equity $3,000,000
net sales........................$10,000,000
Interest expense.................$100,000
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. 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: