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The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,771,500 Liabilities: Current
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The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
Property, plant, and equipment (net) $1,771,500 Liabilities: Current liabilities $235,000 Note payable, 6%, due in 15 years 1,181,000 Total liabilities $1,416,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $1,416,000 Common stock, $10 par (no change during year) 1,416,000 Retained earnings: Balance, beginning of year $1,510,000 Net income 660,000 $2,170,000 Preferred dividends $28,320 Common dividends 253,680 282,000 Balance, end of year 1,888,000 Total stockholders' equity $4,720,000 Sales $17,487,000 Interest expense $70,860 Assuming that long-term investments totaled $3,068,000 throughout the year and that total assets were $5,829,000 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 %
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