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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) $2,207,800 Liabilities: Current liabilities $233,000 Note payable, 6%, due in 15 years 1,162,000 Total liabilities $1,395,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $1,046,250 1,046,250 Retained earnings: Balance, beginning of year $1,116,000 Net income 499,000 $1,615,000 Preferred dividends $41,850 Common dividends 178,150 220,000 Balance, end of year 1,395,000 Total stockholders' equity $3,487,500 Sales $21,421,125 Interest expense $69,720 Assuming that total assets were $4,638,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. Assuming that total assets were $4,638,000 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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