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) $2,412,700 Liabilities: Current

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Property, plant, and equipment (net) $2,412,700
Liabilities:
Current liabilities $211,000
Note payable, 6%, due in 15 years 1,049,000
Total liabilities $1,260,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year) $756,000
Common stock, $10 par (no change during year) 756,000
Retained earnings:
Balance, beginning of year $806,000
Net income 324,000 $1,130,000
Preferred dividends $30,240
Common dividends 91,760 122,000
Balance, end of year 1,008,000
Total stockholders' equity $2,520,000
Sales $17,690,400
Interest expense $62,940

Assuming that total assets were $3,591,000 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

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

Accounting For Payroll

Authors: Steven M. Bragg

1st Edition

0471251089, 9780471251088

More Books

Students also viewed these Accounting questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago