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Please answer with explanations asset turnover, return on total assets, return on stockholders equity and return on common stockholders equity .Thx

Please answer with explanations asset turnover, return on total assets, return on stockholders equity and return on common stockholders equity .Thx

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer with explanations asset turnover, return on total assets, return on stockholders equity and return on common stockholders equity .Thx
Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,725,000 Property, plant, and equipment (net) Liabilities: Current liabilities $150,000 Note payable, 6%, due in 15 years 750,000 Total liabilities $900,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $540,000 year) Common stock, $10 par (no change during year) 540,000 Retained earnings: Balance, beginning of year $576,000 Net income 219,000 $795,000 Preferred dividends $21,600 Common dividends 53,400 75,000 Balance, end of year 720,000 Total stockholders' equity $1,800,000 Sales 11 846 250 & 6. 7 8 9. y
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. $1,725,000 Property, plant, and equipment (net) Liabilities: Current liabilities $150,000 Note payable, 6%, due in 15 years 750,000 Total liabilities $900,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during $540,000 year) Common stock, $10 par (no change during year) 540,000 Retained earnings: Balance, beginning of year $576,000 Net income 219,000 $795,000 Preferred dividends $21,600 Common dividends 53,400 75,000 Balance, end of year 720,000 Total stockholders' equity $1,800,000 Sales 11 846 250 & 6. 7 8 9. y
еBook A Calculator Retained earnings: Balance, beginning of year $576,000 Net income 219,000 $795,000 Preferred dividends $21,600 Common dividends 53,400 75,000 Balance, end of year 720,000 Total stockholders' equity $1,800,000 Sales $11,846,250 Interest expense $45,000 Assuming that total assets were $2,565,000 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 2.3 b. Ratio of liabilities to stockholders' equity 0.5 c. Asset turnover d. Return on total assets % e. Return on stockholders' equity f. Return on common stockholders' equity %24 & 8 backs e t y k C V m alt ctrl
Transcribed Image Text:еBook A Calculator Retained earnings: Balance, beginning of year $576,000 Net income 219,000 $795,000 Preferred dividends $21,600 Common dividends 53,400 75,000 Balance, end of year 720,000 Total stockholders' equity $1,800,000 Sales $11,846,250 Interest expense $45,000 Assuming that total assets were $2,565,000 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 2.3 b. Ratio of liabilities to stockholders' equity 0.5 c. Asset turnover d. Return on total assets % e. Return on stockholders' equity f. Return on common stockholders' equity %24 & 8 backs e t y k C V m alt ctrl
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