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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. Property, plant,
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) $1,625,200 Liabilities: Current liabilities $190,000 956,000 Note payable, 6%, due in 15 years Total liabilities $1,146,000 $687,600 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: 687,600 Balance, beginning of year $734,000 Net income 274,000 $1,008,000 Preferred dividends $13,752 Common dividends 77,448 91,200 Balance, end of year 916,800 Total stockholders' equity $2,292,000 Sales $19,106,400 Interest expense $57,360 Interest expense $57,360 Assuming that total assets were $3,266,000 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
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