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. $1,474,000 Property, plant, and equipment (net) Liabilities: Current

image text in transcribed

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,474,000 Property, plant, and equipment (net) Liabilities: Current liabilities $134,000 670,000 Note payable, 6%, due in 15 years Total liabilities $804,000 $1,206,000 1,206,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends $1,771,000 $1,286,000 485,000 $48,240 114,760 163,000 Balance, end of year 1,608,000 $4,020,000 Total stockholders' equity Sales $25,869,250 Interest expense $40,200 Assuming that total assets were $4,583,000 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 Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Steinbart Romney B.

9th International Edition

0470409460, 978-0470409466

More Books

Students also viewed these Accounting questions