Question
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) $1,881,600 Liabilities: Current liabilities $234,000 Note payable, 6%, due in 15 years 1,176,000 Total liabilities $1,410,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $2,115,000 Common stock, $10 par (no change during year) 2,115,000 Retained earnings: Balance, beginning of year $2,256,000 Net income 904,000 $3,160,000 Preferred dividends $84,600 Common dividends 255,400 340,000 Balance, end of year 2,820,000 Total stockholders' equity $7,050,000 Sales $53,615,250 Interest expense $70,560 Assuming that total assets were $8,037,000 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 fill in the blank 1 b. Ratio of liabilities to stockholders' equity fill in the blank 2 c. Asset turnover fill in the blank 3 d. Return on total assets fill in the blank 4 % e. Return on stockholders equity fill in the blank 5 % f. Return on common stockholders' equity fill in the blank 6 %
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