Homework Help is Here – Start Your Trial Now!
Business
Accounting
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,202,600 Property, plant, and equipment (net) Liabilities: Current liabilities $173,000 Note payable, 6%, due in 15 years 859,000 $1,032,000 Total liabilities Stockholders' equity $619,200 Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) 619,200 Retained earnings: Balance, beginning of year $660,000 Net income 314,000 $974,000 Preferred dividends $24,768 123,632 148,400 Common dividends Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540 Retained earnings: Balance, beginning of year $660,000 Net income $974,000 314,000 Preferred dividends $24,768 Common dividends 123,632 148,400 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales $51,540 Interest expense Assuming that total assets were $2,941,000 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

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,202,600 Property, plant, and equipment (net) Liabilities: Current liabilities $173,000 Note payable, 6%, due in 15 years 859,000 $1,032,000 Total liabilities Stockholders' equity $619,200 Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) 619,200 Retained earnings: Balance, beginning of year $660,000 Net income 314,000 $974,000 Preferred dividends $24,768 123,632 148,400 Common dividends Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540 Retained earnings: Balance, beginning of year $660,000 Net income $974,000 314,000 Preferred dividends $24,768 Common dividends 123,632 148,400 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales $51,540 Interest expense Assuming that total assets were $2,941,000 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

Managerial Accounting
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 21E
See similar textbooks
icon
Related questions
Question
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,202,600 Property, plant, and equipment (net) Liabilities: Current liabilities $173,000 Note payable, 6%, due in 15 years 859,000 $1,032,000 Total liabilities Stockholders' equity $619,200 Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) 619,200 Retained earnings: Balance, beginning of year $660,000 Net income 314,000 $974,000 Preferred dividends $24,768 123,632 148,400 Common dividends Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540
Transcribed Image Text:Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,202,600 Property, plant, and equipment (net) Liabilities: Current liabilities $173,000 Note payable, 6%, due in 15 years 859,000 $1,032,000 Total liabilities Stockholders' equity $619,200 Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) 619,200 Retained earnings: Balance, beginning of year $660,000 Net income 314,000 $974,000 Preferred dividends $24,768 123,632 148,400 Common dividends Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540
Retained earnings: Balance, beginning of year $660,000 Net income $974,000 314,000 Preferred dividends $24,768 Common dividends 123,632 148,400 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales $51,540 Interest expense Assuming that total assets were $2,941,000 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
Transcribed Image Text:Retained earnings: Balance, beginning of year $660,000 Net income $974,000 314,000 Preferred dividends $24,768 Common dividends 123,632 148,400 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales $51,540 Interest expense Assuming that total assets were $2,941,000 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS