Question
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Assuming that long-term investments totaled $1,272,000 throughout the
The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
Assuming that long-term investments totaled $1,272,000 throughout the year and that total assets were $2,417,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.
a. Ratio of fixed assets to long-term liabilities 1.60
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 ?
Property, plant, and equipment (net) $ 3,200,000 Liabilities: Current liabilities... Mortgage note payable, 6%, issued 2003, due 2019..... $ 1,000,000 2,000,000 Total liabilities .... $ 3,000,000 Stockholders'equity: Preferred $10 stock, $100 par (no change during year)... Common stock, $10 par (no change during year) .... Retained earnings: Balance, beginning of year... Net income.... $ 1,000,000 2,000,000 $1,570,000 930,000 $2,500,000 $ 100,000 Preferred dividends Common dividends 400,000 500,000 Balance, end of year. 2,000,000 $ 5,000,000 $18,900,000 $ 120,000 Total stockholders'equity. Net sales..... Interest expense
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