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  3. six measures of solvency or profitability the foll

Six measures of solvency or profitability The following data were taken from the financial statements...

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Accounting

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)
$3,200,000
Liabilities:
Current liabilities
$1,000,000
Note payable, 6%, due in 15 years
2,000,000
Total liabilities
$3,000,000
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
$1,570,000
Net income
930,000
Preferred dividends
(100,000)
Common dividends
(400,000)
Balance, end of year
Total stockholders' equity
Sales
\table[[2,000,000
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