Answer:
a. Ratio of fixed assets to long-term liabilities = fixed assets / long term liabilities = $1,412,700 / $831,000 = 1.7
b. Ratio of liabilities to stockholders' equity = liabilities / equity = $996,000 / $4,980,000 = 0.2
c. Asset turnover = total revenue / average assets = $27,384,550 / [($5,976,000 + $5,677,000)/2] = 4.7
d. Return on total assets = (net income + interest expense) / average assets = ($601,000 + $49,860) / [($5,976,000 + $5,677,000)/2] = 11.2%
e. Return on stockholders’ equity = net income / average stockholders' equity = $601,000 / {[($1,594,000 + $1,494,000 + $1,494,000) + $4,980,000] / 2} = $601,000 / {($4,582,000 + $4,980,000) / 2} = $601,000 / $4,781,000 = 12.57%
f. Return on common stockholders' equity = (net income - preferred dividends) / average common stock = ($601,000 - $59,760) / $1,494,000 = 36.2%
