Question

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Property, plant, and equipment (net)						$1,887,000
Liabilities:
	Current liabilities			$222,000
	Note payable, 6%, due in 15 years			1,110,000
	Total liabilities					$1,332,000
Stockholders' equity:
	Preferred $4 stock, $100 par (no change during year)					$1,998,000
	Common stock, $10 par (no change during year)					1,998,000
Retained earnings:
	Balance, beginning of year	$2,132,000
	Net income	779,000		$2,911,000
	Preferred dividends	$79,920
	Common dividends	167,080		247,000
	Balance, end of year					2,664,000
Total stockholders' equity						$6,660,000
Sales						$39,739,200
Interest expense						$66,600

Assuming that total assets were $7,592,000 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	%

Answer 1