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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) $945,000 Common stock, $10 par (no change during year) 945,000 Retained earnings: Balance, beginning of year $1,008,000 416,000 Net income $1,424,000 Preferred dividends $37,800 Common dividends 126,200 164,000 Balance, end of year 1,260,000 Total stockholders' equity $3,150,000 Sales $13,617,500 Interest expense $62,940 Assuming that long-term investments totaled $2,205,000 throughout the year and that total assets were $4,190,000 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
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