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Six measures of solvency or profitability

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Line Item Description Amount Amount Amount

Property, plant, and equipment $($net$)$ $$3,200,000$

Liabilities:

Current liabilities $$1,000,000$

Note payable, $6\%,$ due in $15$ years $2,000,000$

Total liabilities $$3,000,000$

Stockholders$$ equity:

Preferred $$10$ stock, $$100$ par $($no change during year$)$ $$1,000,000$

Common stock, $$10$ par $($no change during year$)2,000,000$

Retained earnings:

Balance, beginning of year $$1,570,000$

Net income $930,000$

Preferred dividends $(100,000)$

Common dividends $(400,000)$

Balance, end of year $2,000,000$

Total stockholders$$ equity $$5,000,000$

Sales $$18,900,000$

Interest expense $$120,000$

Assuming that long$-$term investments totaled $$3,000,000$ throughout the year and that total assets were $$7,000,000$ at the beginning of the current fiscal year, determine the following. Round your answers to one decimal place.

Line Item Description Ratio

a$.$ Ratio of fixed assets to long$-$term liabilities fill in the blank $1$

b$.$ Ratio of liabilities to stockholders' equity fill in the blank $2$

c$.$ Asset turnover fill in the blank $3$

d$.$ Return on total assets fill in the blank $4$

$\%$

e$.$ Return on stockholders$$ equity fill in the blank $5$

$\%$

f$.$ Return on common stockholders$$ equity fill in the blank $6$

$\%$

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