Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $2,372,000 $236,000 1, 18 $1,422,000 Property , plant, and equipment (net) Liabilities: Current liabilities Note payable , 6%, due in 15 years Total liabilities Stockholders equity: Preferred $2 stock , $100 par (no change during year) Common stock , $10 par (no change during year ) Retained earnings : Balance , beginning of year Net Income Preferred dividends Common dividends $1,422,000 1, 422, 000 $2,054,000 $1,516,000 538,000 $28,440 129,560 158,000 Balance , end of year 1,896,000 Total holders^ prime equity $4,740,000 Sales $40,253,600

Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,500,000 Preferred $5 stock, $50 par $146,000 Common stock, $9 par $243,090.00 Income before income tax was $336,000, and income taxes were $51,300 for the current year. Cash dividends paid on common stock during the current year totaled $97,236. The common stock was selling for $90 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield