17-19

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)						$1,812,800
Liabilities:
	Current liabilities			$226,000
	Note payable, 6%, due in 15 years			1,133,000
	Total liabilities					$1,359,000
Stockholders' equity:
	Preferred $2 stock, $100 par (no change during year)					$2,038,500
	Common stock, $10 par (no change during year)					2,038,500
Retained earnings:
	Balance, beginning of year	$2,174,000
	Net income	636,000		$2,810,000
	Preferred dividends	$40,770
	Common dividends	51,230		92,000
	Balance, end of year					2,718,000
Total stockholders' equity						$6,795,000
Sales						$41,340,000
Interest expense						$67,980

Assuming that total assets were $7,746,000 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	%