Seven metrics The following data were taken from the financial statements of Woo

Question

Seven metrics 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) Liabilities $1,015,200 Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities $168,000 846,000 $1,014,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $1,521,000 Common stock, $10 par (no change during year) 1,521,000 Retained earnings $1,622,000 Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year 484,000 $2,106,000 $30,420 47,580 78,000 Total stockholders' equity Sales Interest expense Beginning-of-the-year amounts: 2,028,000 5,070,000 $17,629,000 $121,064

Explanation / Answer

Debt ratio 16.67% Ratio of fixed assets to long-term liabilities 120.00% Ratio of Liabilities to stockholder's equity 20.00% Asset turnover 2.97 Return on total assets 9.95% Return on stockholder's equity 9.55% Return on common stockholder's equity 12.78%      1,014,000.00      6,084,000.00 ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill')      1,015,200.00          846,000.00 fixed assets by the amount of long-term debt      1,014,000.00      5,070,000.00 company's totalliabilities by its stockholders' equity    17,629,000.00      5,932,000.00 net sales by average total assets          605,064.00      6,084,000.00 earnings before interest and taxes (EBIT) against its total net assets          484,000.00      5,070,000.00 net income by shareholder's equity

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