eBook 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) Liabilities: Calculator $3,200,000 Current liabilities Note payable, 6%, due in 15 years Total liabilities $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 $2.500,000o $100,000 400,000 500,000 Total stockholders' equity Sales Interest expense 2,000,000 $5,000,000 $18,750,000 $120,000 eBook 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 1.6 0.6 d. Return on total assets 141 % 19.4) % 21.9 | 96 on stockholders' equity stockholders' equity a. Divide property, plant, and equipment (net) by long-term liabilities b. Divide total liabilities by total stockholders'equity c. Divide sales by average total assets. Average total assets-(Beginning total assets + Ending total assets) 2. To find ending total assets, use the accounting equation and substitute ending liabilities + stockholders'equity for the amount. d. Divide the sum of net income plus interest expense by average total assets. Average total assets (Beginning total assets+ Ending total assets) + 2. To find ending total assets, use the accounting equation and substitute ending liabilities + stockholders equity for the amount. e. Divide net income by average total stockholders'equity. Average total stockholders'equity- (Beginning total stockholders equity + Ending total stockholders'equity) +2 f. Divide net income minus preferred dividends by average common stockholders' equity. Common stockholders'eg