Answered step by step
Verified Expert Solution
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) $1,602,000 Liabilities: Current
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,602,000 Liabilities: Current liabilities $159,000 Note payable, 6%, due in 15 years 801,000 Total liabilities $960,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,440,000 1,440,000 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $1,536,000 553,000 Net income $2,089,000 Preferred dividends $57,600 Common dividends 111,400 169,000 Balance, end of year 1,920,000 $4,800,000 Total stockholders' equity Sales $23,025,600 Interest expense $48,060 Assuming that total assets were $5,472,000 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started