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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,
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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, and equipment (net) $2,392,000 Liabilities: Current liabilities $238,000 Note payable, 6%, due in 15 years 1,196,000 Total liabilities $1,434,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $1,434,000 Common stock, $10 par (no change during year) 1,434,000 Retained earnings: Balance, beginning of year $1,530,000 Net income 645,000 $2,175,000 Preferred dividends $28,680 Common dividends 234,320 263,000 Balance, end of year 1,912,000 Total stockholders' equity $4,780,000 Sales $30,292,500 Interest expense $71,760 Assuming that total assets were $5,903,000 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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