# The following data were taken from the financial statements of Gates Inc. for the current fiscal year.\$1,202,600Property, plant, and equipment (net)Liabilities:\$173,000Current liabilities859,000Note payable, 6%, due in 15 years\$1,032,000Total liabilitiesStockholders' equity:Preferred \$4 stock, \$100 par (no change during year)\$619,200Common stock, \$10 par (no change during year)619,200Retained earnings:\$660,000Balance, beginning of yearNet income\$974,000314,000Preferred dividends\$24,768148,400Common dividends123,632Balance, end of year825,600Total stockholders' equity\$2,064,000\$19,922,100SalesInterest expense\$51,540Assuming 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. 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 liabilities1.4b. Ratio of liabilities to stockholders' equity0.5c. Asset turnover7.8d. Return on total assets%e. Return on stockholders' equity%f. Return on common stockholders' equity

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Step 1

a. Calculate the ratio of fixed assets to long-term liabilities.

Step 2

b. Calculate the ratio of liabilities to stockholders’ equity.

Step 3

c. Calculate the asset turnove...

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