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) $1,729,000 Liabilities: Current liabilities $182,000 Note payable, 6%, due in 15 years 910,000 Total liabilities $1,092,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $819,000 Common stock, $10 par (no change during year) 819,000 Retained earnings: Balance, beginning of year $874,000 Net income 388,000 $1,262,000 Preferred dividends $16,380 Common dividends 153,620 170,000 Balance, end of year 1,092,000 Total stockholders' equity $2,730,000 Sales $15,278,650 Interest expense $54,600 Assuming that total assets were $3,631,000 at the beginning of the current fiscal year, determine the following. When required, rou 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

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) $1,729,000 Liabilities: Current liabilities $182,000 Note payable, 6%, due in 15 years 910,000 Total liabilities $1,092,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $819,000 Common stock, $10 par (no change during year) 819,000 Retained earnings: Balance, beginning of year $874,000 Net income 388,000 $1,262,000 Preferred dividends $16,380 Common dividends 153,620 170,000 Balance, end of year 1,092,000 Total stockholders' equity $2,730,000 Sales $15,278,650 Interest expense $54,600 Assuming that total assets were $3,631,000 at the beginning of the current fiscal year, determine the following. When required, rou 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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