Six measures of solvency or profitability

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

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a$.$ Divide property, plant and equipment $($net$)$ by long$-$term liabilities.

b$.$ Divide total liabilities by total stockholders'equity.

c$.$ Divide sales by average total assets, excluding long$-$term investments, Average total assets $=($Beginning total assets $+$ Ending total assets$)2.$ To find ending total

assets, use the accounting equation and substitute ending liabilities $+$ stockholders'equity for the amount.

d$.$ Divide the sum of net income plus interest expense by average total assets, Average total assets $=($Beginning total assets $+$ Ending total assets$)2.$ To find ending

thtal accets uce the arnountinn enuation and suthetitute endinn liahilities $+$ stnokholdere'eninity for the amount