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Six Measures of Solvency or Profitability The following data were taken from the financial statements of...

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) $1,285,700
Liabilities:
Current liabilities $199,000
Note payable, 6%, due in 15 years 989,000
Total liabilities $1,188,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year) $1,782,000
Common stock, $10 par (no change during year) 1,782,000
Retained earnings:
Balance, beginning of year $1,900,000
Net income 623,000 $2,523,000
Preferred dividends $35,640
Common dividends 111,360 147,000
Balance, end of year 2,376,000
Total stockholders' equity $5,940,000
Sales $19,300,200
Interest expense $59,340

Assuming that long-term investments totaled $3,564,000 throughout the year and that total assets were $6,772,000 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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