Question

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $2,448,600 Liabilities Current liabilities $222,000 Note payable, 6%, due in 15 years 1,113,000 $1,335,000 Total liabilities Stockholders' equity Preferred $2 stock, $100 par (no change during $1,335,000 year) Common stock, $10 par (no change during year) 1,335,000 Retained earnings Balance, beginning of year $1,424,000 Net income 573,000 $1,997,000 Preferred dividends $26,700 Common dividends 190,300 217,000 Balance, end of year 1,780,000 $4,450,000 Total stockholders' equity $14,017,350 Sales $66,780 Interest expense Assuming that long-term investments totaled $2,892,000 throughout the year and that total assets were $5,496,000 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

Answer 1

= 2.20 J 13000 Radio of Liato Stock holdes's Equ Stock hold 't equi 李1335,000 .30 Aya, Total aset $14,01 250 = 2.30 6,19 ,30D 2 2

830 Net Income 12.30 Net income dividmd lh $13 3Sprn eau doot cV mona than+- at a me