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) $1,414,800 Liabilities: Current

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,414,800 Liabilities: Current liabilities $156,000 Note payable, 6%, due in 15 years 786,000 Total liabilities $942,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $942,000 Common stock, $10 par (no change during year) 942,000 Retained earnings: Balance, beginning of year $1,004,000 Net income 357,000 $1,361,000 Preferred dividends $37,680 Common dividends 67,320 105,000 Balance, end of year 1,256,000 Total stockholders' equity $3,140,000 Sales $23,482,000 Interest expense $47,160 Assuming that total assets were $3,878,000 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

Strategic Management Theory And Cases An Integrated Approach

Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones

13th Edition

0357033841, 978-0357033845

More Books

Students also viewed these Accounting questions

Question

what are the steps of loan process of ICICI BANK

Answered: 1 week ago

Question

highlight how to collect and record interview and diary based data;

Answered: 1 week ago

Question

clarify the relationship between research, theory and practice;

Answered: 1 week ago

Question

evaluate the quality of your data;

Answered: 1 week ago