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marks People Window Help ? ? 30%: xCengageNOWV2 | Online teach x New Tab takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSessionLocatoraassignment; tak a ? o Print Item Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year, Property, plant, and equipment (net) Liabilities: $1,034,800 Current liabilities Note payable, 6%, due in 15 years Total liabilities Stockholders' equity: $158,000 796,000 $954,000 Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) $572,400 572,400 Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity Sales Interest expense Assuming that total assets were $2,719,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. $610,000 263,000 $873,000 $22,896 86,904 109,800 763,200 $1,908,000 $18,417,300 $47,760 Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity Check My Work 2 more Check My Work uses remaining. Previous Next

Explanation / Answer

fixed assets to long term liabilities ratio

fixed assets/total of liabilities

1034800/954000

1.084696

ratio of liabilities to equity

total of liabilities/equity

954000/1908000

0.5

Asset turnover

sales/average total assets

18417300/2790500

6.6

return on total assets

EBIT/total assets

310760/2862000

10.86%

return on stockholders equity

net income/total shareholders equity

263000/1908000

13.78%

return on common stock holders equity

net income available to common shareholders/common stockholders equity

240104/1335600

17.98%

total average assets

(2862000+2719000)/2

2790500

total assets at the end of year

1908000+954000

2862000

EBIT

net income+interest

263000+47760

310760

common stockholder equity

1908000-572400

1335600

net income available to common stockholders

263000-22896

240104