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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Asked Oct 8, 2019
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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:
$173,000
Current liabilities
859,000
Note payable, 6%, due in 15 years
$1,032,000
Total liabilities
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$619,200
Common stock, $10 par (no change during year)
619,200
Retained earnings:
$660,000
Balance, beginning of year
Net income
$974,000
314,000
Preferred dividends
$24,768
148,400
Common dividends
123,632
Balance, end of year
825,600
Total stockholders' equity
$2,064,000
$19,922,100
Sales
Interest expense
$51,540
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.
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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: $173,000 Current liabilities 859,000 Note payable, 6%, due in 15 years $1,032,000 Total liabilities Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $619,200 Common stock, $10 par (no change during year) 619,200 Retained earnings: $660,000 Balance, beginning of year Net income $974,000 314,000 Preferred dividends $24,768 148,400 Common dividends 123,632 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540 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.

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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
1.4
b. Ratio of liabilities to stockholders' equity
0.5
c. Asset turnover
7.8
d. Return on total assets
%
e. Return on stockholders' equity
%
f. Return on common stockholders' equity
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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 1.4 b. Ratio of liabilities to stockholders' equity 0.5 c. Asset turnover 7.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity

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Expert Answer

Step 1

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

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Fixed assets Ratio of fixed assets to long-term liabilities = : Long-term liabilities $1,202, 600 S859,000 = 1.4 times

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Step 2

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

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Total liabilities Ratio of liabilities to stockholders' equity = Total stockholders' equity $1,032,000 $2,064,000 0.5 times

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Step 3

c. Calculate the asset turnove...

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Net sales Asset turnover ratioAverage total assets s19,922,100 S2,941000S1, 032,000 + S2, 064,000)) 2 $19,922,100 S2,941,000+S1,548,000 S19,922.100 S4, 489,000 = 4.4 times

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