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17-3 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.

17-3 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)

$1,915,200

Liabilities:

Current liabilities

$201,000

Note payable, 6%, due in 15 years

1,008,000

Total liabilities

$1,209,000

Stockholders' equity:

Preferred $4 stock, $100 par (no change during year)

$1,813,500

Common stock, $10 par (no change during year)

1,813,500

Retained earnings:

Balance, beginning of year

$1,934,000

Net income

685,000

$2,619,000

Preferred dividends

$72,540

Common dividends

128,460

201,000

Balance, end of year

2,418,000

Total stockholders' equity

$6,045,000

Sales

$44,556,750

Interest expense

$60,480

Assuming that total assets were $6,891,000 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

%

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