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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) $2,014,800 Liabilities: Current
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $2,014,800 Liabilities: Current liabilities $174,000 Note payable, 6%, due in 15 years 876,000 $1,050,000 Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year $1,050,000 1,050,000 Net income $1,588,000 $1,120,000 468,000 $21,000 167.000 Preferred dividends Common dividends 188,000 Balance, end of year Total stockholders' equity 1,400,000 $3,500,000 59,726,750 $52,560 Sales Interest expense Balance, beginning of year Net Income $1,120,000 468,000 $1,588,000 $21,000 Preferred dividends Common dividends 167,000 188,000 1,400,000 Balance, end of year $3,500,000 Total stockholders' equity $9,726,750 Sales $52,560 Interest expense Assuming that long-term investments totaled $2,275,000 throughout the year and that total assets were $4,323,000 at the beginning of the current fiscal Year, determine the following. When required, round to one decimal place. abilities a. Ratio of fixed assets to long-term b. Ratio of liabilities to stockholders' equity C. Asset turnover d. Return on total assets e. Return on stockholders' equity 1. Return on common stockholders' equity
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