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
$
Liabilities:
Current liabilities
Note payable, due in years
Total liabilities
$
Stockholders' equity:
Preferred $ stock, $ par no change during year
Common stock, $ par no change during year
Retained earnings:
Balance, beginning of year
Net income
Preferred dividends
Common dividends
$
Balance, end of year
Total stockholders' equity
Sales
Interest expense
a Ratio of fixed assets to longterm liabilities
b Ratio of liabilities to stockholders' equity
c Asset turnover
d Return on total assets
e Return on stockholders' equity
