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

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 Property, plant, and equipment (net) Liabilities: $236,000 1,186,000 $1,422,000 $1,422,000 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 $2,054,000 $1,516,000 538,000 $28,440 129,560 158,000 Balance, end of year 1,896,000 $4,740,000 Total stockholders' equity Sales $40,253,600 U WI PIRTI IELUUM year) 1,422,000 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income $1,516,000 538,000 $28,440 $2,054,000 Preferred dividends Common dividends 129,560 158,000 Balance, end of year 1,896,000 $4,740,000 Total stockholders' equity Sales $40,253,600 Interest Expense $71,160 Assuming that total assets were $5,854,000 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 1. Return on common stockholders equity