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) $1,140,700
Liabilities: Current liabilities $133,000
Mortgage note payable, 8%, issued 2005, due 2021 671,000
Total liabilities $804,000
Stockholders' equity: Preferred $2 stock, $100 par (no change during year)
$603,000 Common stock, $10 par (no change during year)
603,000 Retained earnings:
Balance, beginning of year $644,000
Net income 296,000 $940,000
Preferred dividends $12,060
Common dividends 123,940 136,000
Balance, end of year 804,000
Total stockholders' equity $2,010,000
Sales $8,419,950
Interest expense $53,680
Assuming that long-term investments totaled $1,407,000 throughout the year and that total assets were $2,673,000 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