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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) $1,865,600 Liabilities: Current liabilities $232,000 Note payable, 6%, due in 15 years 1,166,000 Total liabilities $1,398,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,398,000 Common stock, $10 par (no change during year) 1,398,000 Retained earnings: Balance, beginning of year $1,492,000 Net Income 624,000 $2.116.000 Preferred dividends $55.920 Common dividends 196,080 252,000 Balance, end of year 1,864,000 Total stockholders' equity $4,650.000 Sales $11,297,250 Interest expense Assuming that long-term investments totaled $3,029,000 throughout the year and that total assets were $5.755,000 at the beginning of the current scal year, determine the following. When required, round to one decimal place . Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity C. Asset tumover d. Retum on total assets. a. Rotum on stockholders' equity 1. Return on common stocholders equity
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