10.

1. Six Measures of Solvency or Profitability

   The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

   Property, plant, and equipment (net)						$2,127,400
   Liabilities:
   	Current liabilities			$194,000
   	Note payable, 6%, due in 15 years			967,000
   	Total liabilities					$1,161,000
   Stockholders' equity:
   	Preferred $4 stock, $100 par (no change during year)					$1,161,000
   	Common stock, $10 par (no change during year)					1,161,000
   Retained earnings:
   	Balance, beginning of year	$1,238,000
   	Net income	451,000		$1,689,000
   	Preferred dividends	$46,440
   	Common dividends	94,560		141,000
   	Balance, end of year					1,548,000
   Total stockholders' equity						$3,870,000
   Sales						$23,053,500
   Interest expense						$58,020

   Assuming that total assets were $4,779,000 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. Asset turnover
   d. Return on total assets	%
   e. Return on stockholders equity	%
   f. Return on common stockholders' equity	%