The following data were taken from the financial statements of Gates Inc. for the current...
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The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $3,200,000 $1,000,000 2,000,000 $3,000,000 Property, plant, and equipment (net) Liabilities: Current liabilities Note payable, 6%, due in 15 years Total liabilities Stockholders' equity: Preferred $10 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity $1,000,000 2,000,000 $1,570,000 930,000 (100,000) (400,000) 2,000,000 $5,000,000 Sales $18,900,000 Interest expense $120,000 Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the curren fiscal year, determine the following. Round to one decimal place. a. Ratio of fixed assets to long-term liabilities 1.6 b. Ratio of liabilities to stockholders' equity 0.6 C. Asset turnover 2.5 X d. Return on total assets 14 % e. Return on stockholders' equity 19.4 % f. Return on common stockholders' equity 25.3 X %
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