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QUESTION

The following information was taken from the financial statements of Finn Resources Inc. for December 31 of the current fiscal year: Common stock $20...

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).......$1,600,000Liabilities:Current liabilities..........................$200,000Mortgage note payable, 10%, issued 1999, due 2015.......................................1,000,000 Total liabilities.........$1,200,000Stockholders' equity:Preferred $10 stock, $100 par (no change during year).......................$1,000,000Common stock, $10 par (no change during year)..1,000,000Retained earnings:Balance, beginning of year.....$800,000$1,200,000Preferred dividends.............$100,000200,000Balance, and of year.............................1,000,000$3,000,000net sales........................$10,000,000Interest expense.................$100,000Determine 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: 2. Recent balance sheet information for two companies in the food industry, H.J. Heinz Company and The Hershey Company, are as follows (in thousands of dollars):HersheyNet property,plant,and equipment $1,998,153 $1,651,300 $2,505,106 $1,453,538$4,413,641 $1,248,128$1,272,596 $486,473$1,841,683 $683,423a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.H.J. Heinz:Hershey:b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to two decimal places.H.J. Heinz:Hershey:

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