Six Measures of Solvency or Profitability
The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
|Property, plant, and equipment (net)||$895,700|
|Note payable, 6%, due in 15 years||689,000|
|Preferred $2 stock, $100 par (no change during year)||$1,242,000|
|Common stock, $10 par (no change during year)||1,242,000|
|Balance, beginning of year||$1,324,000|
|Balance, end of year||1,656,000|
|Total stockholders' equity||$4,140,000|
Assuming that total assets were $4,720,000 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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