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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) $900,200 Liabilities: Current liabilities $128,000 Note payable, 6%, due in 15 years 643,000 $771,000 Total liabilities Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $578,250 Common stock, $10 par (no change during year) 578,250 Retained earnings: Balance, beginning of year $616,000 Net income $888,000 272,000 Preferred dividends $23,130 Common dividends 93,870 117,000 Balance, end of year 771,000 $1,927,500 Total stockholders' equity $11,577,500 Sales $38,580 Interest expense Assuming that total assets were $2,564,000 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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