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) $2,448,600 Liabilities Current

image text in transcribedimage text in transcribed

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $2,448,600 Liabilities Current liabilities $222,000 Note payable, 6%, due in 15 years 1,113,000 $1,335,000 Total liabilities Stockholders' equity Preferred $2 stock, $100 par (no change during $1,335,000 year) Common stock, $10 par (no change during year) 1,335,000 Retained earnings Balance, beginning of year $1,424,000 Net income 573,000 $1,997,000 Preferred dividends $26,700 Common dividends 190,300 217,000 Balance, end of year 1,780,000 $4,450,000 Total stockholders' equity $14,017,350 Sales $66,780 Interest expense Assuming that long-term investments totaled $2,892,000 throughout the year and that total assets were $5,496,000 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 with AI-Powered 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

Students also viewed these Accounting questions