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Tilden Industries Reported Net Sales Revenue of $1,700,000 and Paid

Question 122

Essay

Tilden Industries reported net sales revenue of $1,700,000 and paid no dividends during the current year.The following information is also available at the end of the current and prior years:
Current Year Prior Year
Total Current Assets $1,000,000 $ 900,000
Property,Plant,and Equipment,Net 1,700,000 1,400,000
Total Current Liabilities 450,000 390,000
Total Long-Term Liabilities 600,000 500,000
Common Stock,$5 Par 1,000,000 1,000,000
Paid-In Capital in Excess of Par 200,000 200,000
Retained Earnings 450,000 210,000
There was no preferred stock outstanding during the current year.
Required:
Part a.Calculate the return on equity for the current year.
Part b.Calculate the debt-to-assets ratio for the current year.
Part c.Calculate the fixed asset turnover ratio for the current year.
Part d.Calculate the current ratio for the current year.
Round all ratios to two decimal points.

Correct Answer:

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Part a
Average common stockholders' equi...

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