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The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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

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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The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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
Transcribed Image Text:The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,892,400 Liabilities: Current liabilities $198,000 Note payable, 6%, due in 15 years 996,000 Total liabilities $1,194,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $895,500 Common stock, $10 par (no change during year) 895,500 Retained earnings: Balance, beginning of year $956,000 Net income 424,000 $1,380,000 Preferred dividends $17,910 Common dividends 168,090 186,000 Balance, end of year 1,194,000 Total stockholders' equity $2,985,000 Sales $23,632,100 Interest expense $59,760 Assuming that total assets were $3,970,000 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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