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The following data were taken from the financial statements of Gates Inc for the current fiscal year. Assuming that long-term investments totaled $3,000,000 throughout the

The following data were taken from the financial statements of Gates Inc for the current fiscal year. Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following:

Ratio of fixed assets to long term assets

Ratio of liabilities to stockholders' equity

Ratio of sales to assets

Rate earned on total assets

Rate earned on stockholders' equity

Rate earned on common stockholders' equity

Round to one decimal place

Property, plant & equipment (net) $3,200,000

Liabilities:

Current liabilities $1,000,000

Mortgage note payable, 6%, issued 2005, due 2021 2,000,000

Total liabilities $3,000,000

Stockholders' equity:

Preferred $10 stock, $100 par (no change during year) $1,000,000

Common Stock, $10 par (no change during year) 2,000,000

Retained earnings:

Balance, beginning of year $1,570,000

Net income 930,000 $2,500,000

Preferred dividends $ 100,000

Common dividends 400,000 500,000

Balance, end of year $ 2,000,000

Total stockholders' equity $ 5,000,000

Sales $18,900,000

Interest expense $ 120,000

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