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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) $1,372,500 Liabilities: Current liabilities $183,000 Note payable, 6%, due in 15 years 915,000 Total liabilities $1,098,000 $658,800 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 658,800 $702,000 Net income 280,000 $982,000 Preferred dividends $13,176 Common dividends 90,424 103,600 Balance, end of year 878,400 Total stockholders' equity $2,196,000 Sales $19,590,150 Interest expense $54,900 Assuming that total assets were $3,129,000 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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