Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,677,200 Property, plant, and equipment (net) Liabilities: Current liabilities $239,000 Note payable, 6%, due in 15 years 1,198,000 Total liabilities $1,437,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $862,200 Common stock, $10 par (no change during year) 862,200 Retained earnings: Balance, beginning of year $920,000 Net income 440,000 $1,360,000 Preferred dividends $17,244 Common dividends 193,156 210,400 Balance, end of year 1,149,600 Total stockholders' equity $2,874,000 Sales $24,377,400 Interest expense $71,880 Assuming that total assets were $4,095,000 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 % 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) $1,674,500 Liabilities: Current liabilities $197,000 Note payable, 6%, due in 15 years 985,000 Total liabilities $1,182,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,182,000 1,182,000 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $1,260,000 Net income 443,000 $1,703,000 Preferred dividends $47,280 Common dividends 79,720 127,000 Balance, end of year 1,576,000 Total stockholders' equity $3,940,000 Sales $22,473,000 Interest expense $59,100 Assuming that total assets were $4,866,000 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 % Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,677,200 Property, plant, and equipment (net) Liabilities: Current liabilities $239,000 Note payable, 6%, due in 15 years 1,198,000 Total liabilities $1,437,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $862,200 Common stock, $10 par (no change during year) 862,200 Retained earnings: Balance, beginning of year $920,000 Net income 440,000 $1,360,000 Preferred dividends $17,244 Common dividends 193,156 210,400 Balance, end of year 1,149,600 Total stockholders' equity $2,874,000 Sales $24,377,400 Interest expense $71,880 Assuming that total assets were $4,095,000 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 % 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) $1,674,500 Liabilities: Current liabilities $197,000 Note payable, 6%, due in 15 years 985,000 Total liabilities $1,182,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,182,000 1,182,000 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $1,260,000 Net income 443,000 $1,703,000 Preferred dividends $47,280 Common dividends 79,720 127,000 Balance, end of year 1,576,000 Total stockholders' equity $3,940,000 Sales $22,473,000 Interest expense $59,100 Assuming that total assets were $4,866,000 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 %
