Question
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,286,900 Liabilities: Current
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,286,900 Liabilities: Current liabilities $152,000 Note payable, 6%, due in 15 years 757,000 Total liabilities $909,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $909,000 Common stock, $10 par (no change during year) 909,000 Retained earnings: Balance, beginning of year $970,000 Net income 381,000 $1,351,000 Preferred dividends $18,180 Common dividends 120,820 139,000 Balance, end of year 1,212,000 Total stockholders' equity $3,030,000 Sales $11,229,000 Interest expense $45,420 Assuming that long-term investments totaled $1,969,000 throughout the year and that total assets were $3,742,000 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 1.7 b. Ratio of liabilities to stockholders' equity 0.3 c. Asset turnover 6
d. Return on total assets | % |
e. Return on stockholders equity | % |
f. Return on common stockholders' equity |
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