The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,202,600 Property, plant, and equipment (net) Liabilities: $173,000 Current liabilities 859,000 Note payable, 6%, due in 15 years $1,032,000 Total liabilities Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $619,200 Common stock, $10 par (no change during year) 619,200 Retained earnings: $660,000 Balance, beginning of year Net income $974,000 314,000 Preferred dividends $24,768 148,400 Common dividends 123,632 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540 Assuming that total assets were $2,941,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. Assuming that total assets were $2,941,000 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 1.4 b. Ratio of liabilities to stockholders' equity 0.5 c. Asset turnover 7.8 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. $1,202,600 Property, plant, and equipment (net) Liabilities: $173,000 Current liabilities 859,000 Note payable, 6%, due in 15 years $1,032,000 Total liabilities Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $619,200 Common stock, $10 par (no change during year) 619,200 Retained earnings: $660,000 Balance, beginning of year Net income $974,000 314,000 Preferred dividends $24,768 148,400 Common dividends 123,632 Balance, end of year 825,600 Total stockholders' equity $2,064,000 $19,922,100 Sales Interest expense $51,540 Assuming that total assets were $2,941,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. Assuming that total assets were $2,941,000 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 1.4 b. Ratio of liabilities to stockholders' equity 0.5 c. Asset turnover 7.8 d. Return on total assets % e. Return on stockholders' equity % f. Return on common stockholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
$1,202,600
Property, plant, and equipment (net)
Liabilities:
$173,000
Current liabilities
859,000
Note payable, 6%, due in 15 years
$1,032,000
Total liabilities
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$619,200
Common stock, $10 par (no change during year)
619,200
Retained earnings:
$660,000
Balance, beginning of year
Net income
$974,000
314,000
Preferred dividends
$24,768
148,400
Common dividends
123,632
Balance, end of year
825,600
Total stockholders' equity
$2,064,000
$19,922,100
Sales
Interest expense
$51,540
Assuming that total assets were $2,941,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Transcribed Image Text:Assuming that total assets were $2,941,000 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
1.4
b. Ratio of liabilities to stockholders' equity
0.5
c. Asset turnover
7.8
d. Return on total assets
%
e. Return on stockholders' equity
%
f. Return on common stockholders' equity
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