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Six Measures of Solvency or Profitability The following data were taken from the financial statements of...

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) $1,687,400
Liabilities:
Current liabilities $154,000
Note payable, 6%, due in 15 years 767,000
Total liabilities $921,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year) $690,750
Common stock, $10 par (no change during year) 690,750
Retained earnings:
Balance, beginning of year $736,000
Net income 251,000 $987,000
Preferred dividends $27,630
Common dividends 38,370 66,000
Balance, end of year 921,000
Total stockholders' equity $2,302,500
Sales $14,142,375
Interest expense $46,020

Assuming that total assets were $3,062,000 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 %

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