1. 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)						$3,200,000
   Liabilities:
   	Current liabilities			$1,000,000
   	Mortgage note payable, 6%, issued 2005, due 2021			2,000,000
   	Total liabilities					$3,000,000
   Stockholders equity:
   	Preferred $10 stock, $100 par (no change during year)					$1,000,000
   	Common stock, $10 par (no change during year)					2,000,000
   Retained earnings:
   	Balance, beginning of year	$1,570,000
   	Net income	930,000		$2,500,000
   	Preferred dividends	$100,000
   	Common dividends	400,000		500,000
   	Balance, end of year					2,000,000
   Total stockholders equity						$5,000,000
   Sales						$18,900,000
   Interest expense						$120,000

   Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.

   a. Ratio of fixed assets to long-term liabilities
   b. Ratio of liabilities to stockholders' equity
   c. Ratio of sales to assets
   d. Rate earned on total assets	%
   e. Rate earned on stockholders' equity	%
   f. Rate earned on common stockholders' equity	%