Chapter 17 HWK Six Measures of Solvency or Profitability The following data were taken fron the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) Liabilities: $3,200,000 Current liabilities Note payable, 6%, due in IS years Total kabilities $1,000,000 2,000,000 $3,000,000 Stockholders' equity: Preferred $10 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $1,000,000 2,000,000 Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year $1,570,000 930,000 $2,500,000 $100,000 400,000 500,00o 2,000,000 $5,000,000 $18,750,000 Total stockholders' equity Sales Type here to search 5 6 Q W R 4 tained earmings Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year otal stockholders' equity $1,570,000 930,000 $2, 500,000 $100,000 400,000 500,000 2,000,000 $5,000,000 $18,750,000 $120,000 Interest expense Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to 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 1.6 2.5 14', 96 19.44 | X % 21.931 x % Check My Work O Type here to search 8 WE