Six Measures ofSolvencyorProfitability

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

Property, plant, and equipment (net)$1,021,800

Liabilities:

Current liabilities$156,000

Note payable, 6%, due in 15 years786,000

Total liabilities$942,000

Stockholders' equity:

Preferred $2 stock, $100 par (no change during year)$942,000

Common stock, $10 par (no change during year)942,000

Retained earnings:

Balance, beginning of year$1,004,000

Net income373,000$1,377,000

Preferred dividends$18,840

Common dividends102,160121,000

Balance, end of year1,256,000Total stockholders' equity$3,140,000

Sales$18,308,000Interest expense$47,160

Assuming that total assets were $3,878,000 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%