Gates Inc. | |||
a) | Ratio of fixed assets to long term liabilities=Net Fixed Assets/Long Term Liabilities | ||
Fixed Assets | |||
Property,Plant and Equipment | $ 10,26,800.00 | ||
Long Term Liability | |||
Note payable 6% due in 15 years | $ 6,04,000.00 | ||
Fixed Assets to Long Term Liabilities=($1026800/$604000) | 1.7 | ||
b) | Ration of Liabilities to Stockholder's Equity=(Total Liabilities/Stockholder's Equity) | ||
Total Liabilities=(A) | $ 7,26,000.00 | ||
Stockholder's Equity=(B) | $ 14,52,000.00 | ||
Liabilities to Stockholder's Equity=($726000/$1452000)=(A)/(B) | 0.5 | ||
c) | Assets Turnover | ||
Total Assets Turnover=Net Sales/Average Assets | |||
Average Assets=(Opening Assets+closing Assets)/2 | |||
Sales=(A) | $ 87,06,350.00 | ||
Opening Assets | $ 20,69,000.00 | ||
* | Closing Assets | $ 21,78,000.00 | |
Average Assets=($2069000+$2178000)/2=(B) | $ 21,23,500.00 | ||
Total Assets Turnover=(A)/(B) | 4.10 | Times | |
* | Total Assets=Total Liabilities +Stockholder's Equity=($726000+$1452000) | ||
d) | Return on Total Assets | ||
Net Income before interest and taxes /Average total Assets | |||
Net Income before interest and taxes =(Net Income+Interest)=($195000+$36240)=(A) | $ 2,31,240.00 | ||
Average Assets=($2069000+$2178000)/2=(B) | $ 21,23,500.00 | ||
Return on total assets=($231240/2123500)=(A)/(B) | 10.89% | ||
e) | Return on stockholder's Equity= Net Income after tax/Average Stockholder's Equity | ||
Net Income=(A) | $ 1,95,000.00 | ||
Average Stockholder's Equity(Beginning Stock holder's Equity+Ending Stockholder's Equity)/2 | $ 25,11,800.00 | ||
Beginning Stockholder's Equity=(Common Stock+Preferred Stock+Retained Earnings)=($435600+$435600+$464000) | $ 13,34,000.00 | ||
Ending Stockholder's Equity | $ 14,52,000.00 | ||
Average Stockholder's Equity=($1334000+$1452000)/2=(B) | $ 13,93,000.00 | ||
Return on stockholder's Equity=($195000/$1393000)=(A)/(B) | 14.00% | ||
f) | |||
Return on common stockholder's equity | |||
(Net Income-Preferred Dividend)/Average Common Stockholder's Equity | |||
(Net Income-Preferred Dividend)=($195000-17424)=(A) | $ 1,77,576.00 | ||
Average common Stockholder's Equity(Beginning common Stock +Ending common stock)/2 | |||
Beginning Common Stockholder's Equity=(Common Stock+Retained Earnings)=($435600+$464000) | $ 8,99,600.00 | ||
Ending Stockholder's Equity=(Total Equity-Preferred stock)=($1452000-435600) | $ 10,16,400.00 | ||
Average common stockholder's equity=($899600+$1016400)/2=(B) | $ 9,58,000.00 | ||
Return on common stockholder's equity=(A)/(B) | 19% |
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) $1,792,000 Liabilities: Current liabilities $224,000 Note payable, 6%, due in 15 years 1,120,000 Total liabilities $1,344,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $2,016,000 Common stock, $10 par (no change during year) 2,016,000 Retained earnings: Balance, beginning of year $2,150,000 Net income 698,000 $2,848,000 Preferred dividends $80,640 Common...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,742,000 Property, plant, and equipment (net) Liabilities: Current liabilities $173,000 871,000 Note payable, 6%, due in 15 years $1,044,000 $783,000 783,000 Total liabilities Stockholders' equity: Preferred 54 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 $1,147,000 5836,000 311,000...
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) $1,162,000 Liabilities: Current liabilities $166,000 Note payable, 6%, due in 15 years 830,000 Total liabilities $996,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $747,000 Common stock, $10 par (no change during year) 747,000 Retained earnings: Balance, beginning of year $796,000 Net income 291,000 $1,087,000 Preferred dividends $29,880 Common...
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) $1,715,400 Liabilities: Current liabilities $190,000 Note payable, 6%, due in 15 years 953,000 Total liabilities $1,143,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,714,500 Common stock, $10 par (no change during year) 1,714,500 Retained earnings: Balance, beginning of year $1,828,000 Net income 567,000 $2,395,000 Preferred dividends $68,580 Common...
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) $1,752,700 Liabilities: Current liabilities $205,000 Note payable, 6%, due in 15 years 1,031,000 Total liabilities $1,236,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,854,000 Common stock, $10 par (no change during year) 1,854,000 Retained earnings: Balance, beginning of year $1,978,000 Net income 804,000 $2,782,000 Preferred dividends $74,160 Common...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,512,400 Property, plant, and equipment (net) Liabilities: Current liabilities Note payable, 6%, due in 15 years Total liabilities $ 158,000 796,000 $954,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $572,400 572,400 Retained earnings: Balance, beginning of year Net income Preferred dividends $610,000 225,000 $835,000 $22,896...
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) $1,430,000 Liabilities: Current liabilities $143,000 Note payable, 6%, due in 15 years 715,000 Total liabilities $858,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $514,800 Common stock, $10 par (no change during year) 514,800 Retained earnings: Balance, beginning of year $550,000 Net income 271,000 $821,000 Preferred dividends $10,296 Common...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $2,358,300 Property, plant, and equipment (net) Liabilities Current liabilities $224,000 1,123,000 Note payable, 6%, due in 15 years $1,347,000 Total liabilities Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,347,000 Common stock, $10 par (no change during year) 1,347,000 Retained earnings: Balance, beginning of year $1,436,000 574,000 Net income $2,010,000 Preferred dividends $53,880 160,120...
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) $852,600 Liabilities: Current liabilities $123,000 Note payable, 6%, due in 15 years 609,000 Total liabilities $732,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $549,000 Common stock, $10 par (no change during year) 549,000 Retained earnings: Balance, beginning of year $586,000 Net income 250,000 $836,000 Preferred dividends $10,980 Common...
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) $2,007,900 Liabilities: Current liabilities $174,000 Note payable, 6%, due in 15 years 873,000 Total liabilities $1,047,000 $785,250 785,250 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income $838,000 $1,227,000 Preferred dividends 389,000 $15,705 164,295...