17.3

5.

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)						$989,800
Liabilities:
	Current liabilities			$142,000
	Note payable, 6%, due in 15 years			707,000
	Total liabilities					$849,000
Stockholders' equity:
	Preferred $2 stock, $100 par (no change during year)					$636,750
	Common stock, $10 par (no change during year)					636,750
Retained earnings:
	Balance, beginning of year	$680,000
	Net income	306,000		$986,000
	Preferred dividends	$12,735
	Common dividends	124,265		137,000
	Balance, end of year					849,000
Total stockholders' equity						$2,122,500
Sales						$18,542,400
Interest expense						$42,420

Assuming that total assets were $2,823,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

Assuming that total assets were $2,823,000 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 ___	%