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)$2,322,000

Liabilities:

Current liabilities$231,000

Note payable, 6%, due in 15 years1,161,000

Total liabilities 1392000

Stockholders' equity:

Preferred $4 stock, $100 par (no change during year)$1,044,000

Common stock, $10 par (no change during year)1,044,000

Retained earnings:

Balance, beginning of year$1,114,000

Net income 479,000 $1,593,000

Preferred dividends $41,760

Common dividends 159,240 201,000

balance, end of year1,392,000

Total stockholders' equity$3,480,000

Sales$26,600,000

Interest expense$69,660

Assuming that total assets were $4,628,000 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