Six Measures of Solvency or Profitability
The following data were taken from the financial statements ofGates Inc. for the current fiscal year.
| Property, plant, and equipment (net) | | | | | $1,990,800 |
| Liabilities: | | | | | |
| Current liabilities | | | $220,000 | | |
| Note payable, 6%, due in 15 years | | | 1,106,000 | | |
| Total liabilities | | | | | $1,326,000 |
| Stockholders' equity: | | | | | |
| Preferred $2 stock, $100 par (no change during year) | | | | | $1,326,000 |
| Common stock, $10 par (no change during year) | | | | | 1,326,000 |
| Retained earnings: | | | | | |
| Balance, beginning of year | $1,414,000 | | | | |
| Net income | 623,000 | | $2,037,000 | | |
| Preferred dividends | $26,520 | | | | |
| Common dividends | 242,480 | | 269,000 | | |
| Balance, end of year | | | | | 1,768,000 |
| Total stockholders' equity | | | | | $4,420,000 |
| Sales | | | | | $32,494,500 |
| Interest expense | | | | | $66,360 |
Assuming that total assets were $5,459,000 at the beginning ofthe current fiscal year, determine the following. When required,round to one decimal place.
| a. Ratio of fixed assets to long-termliabilities | |
| 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 | % |
