The following data were taken from the financial statements of Gates Inc. for the current fiscal year.Please see the attachment for details:Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders’ equity, (c) asset turnover, (d) return on total assets, (e) return on stockholders’ equity, and (f) return on common stockholders’ equity. Round ratios and percentages to one decimal place as appropriate. Property, plant, and equipment (net) .$ 3,200,000Liabilities:Current liabilities.....$1,000,000Note payable, 6%, due in 15 years2,000,000$ 3,000,000Total liabilities ....Stockholders' equity:Preferred $10 stock, $100 par (no change during year)$ 1,000,000...Common stock, $10 par (no change during year)2,000,000... ...Retained earnings:Balance, beginning of year.Net income ...$1,570,000$2,500,000930,000$ 100,000Preferred dividends...Common dividends ..Balance, end of year..400,000500,0002,000,000$ 5,000,000Total stockholders' equitySales ...$18,750,000..$ 120,000Interest expense

Name: The following data were taken from the financial statements of Gates I
Uploaded: 2022-11-29T14:11:17.000Z
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Description: The following data were taken from the financial statements of Gates Inc. for the current fiscal year.Please see the attachment for details:Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the followi

Answered: Property, plant, and equipment (net) .…

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

Please see the attachment for details:

Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following: (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, and (f) return on common stockholders’ equity. Round ratios and percentages to one decimal place as appropriate.

Property, plant, and equipment (net) .
$ 3,200,000
Liabilities:
Current liabilities.....
$1,000,000
Note payable, 6%, due in 15 years
2,000,000
$ 3,000,000
Total liabilities ....
Stockholders' equity:
Preferred $10 stock, $100 par (no change during year)
$ 1,000,000
...
Common stock, $10 par (no change during year)
2,000,000
... ...
Retained earnings:
Balance, beginning of year.
Net income ...
$1,570,000
$2,500,000
930,000
$ 100,000
Preferred dividends
...
Common dividends ..
Balance, end of year..
400,000
500,000
2,000,000
$ 5,000,000
Total stockholders' equity
Sales ...
$18,750,000
..
$ 120,000
Interest expense

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