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)||$1,729,200|
|Note payable, 6%, due in 15 years||786,000|
|Preferred $4 stock, $100 par (no change during year)||$706,500|
|Common stock, $10 par (no change during year)||706,500|
|Balance, beginning of year||$754,000|
|Balance, end of year||942,000|
|Total stockholders' equity||$2,355,000|
Assuming that total assets were $3,132,000 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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