Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,162,200 Liabilities: Current

image text in transcribedimage text in transcribed

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,162,200 Liabilities: Current liabilities $180,000 Note payable, 6%, due in 15 years 894,000 Total liabilities $1,074,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $1,074,000 Common stock, $10 par (no change during year) 1,074,000 Retained earnings: Balance, beginning of year $1,146,000 Net income 439,000 $1,585,000 Preferred dividends $21,480 Common dividends 131,520 153,000 Balance, end of year 1,432,000 Total stockholders' equity $3,580,000 Sales $29,493,750 Interest expense $53,640 Assuming that total assets were $4,421,000 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 6.4 b. Ratio of liabilities to stockholders' equity 0.3 c. Asset turnover 6.4 d. Return on total assets 10.6 X % e. Return on stockholders' equity % f. Return on common stockholders' equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions