Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. six measures of solvency or profitability the foll

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates...

50.1K

Verified Solution

Question

Accounting

Six Measures of Solvency or Profitability

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

Property, plant, and equipment (net)$945,000
Liabilities:
Current liabilities$126,000
Note payable, 6%, due in 15 years630,000
Total liabilities$756,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year)$567,000
Common stock, $10 par (no change during year)567,000
Retained earnings:
Balance, beginning of year$604,000
Net income268,000$872,000
Preferred dividends$11,340
Common dividends104,660116,000
Balance, end of year756,000
Total stockholders' equity$1,890,000
Sales$13,158,000
Interest expense$37,800

Assuming that total assets were $2,514,000 at the beginning ofthe current fiscal year, determine the following. When required,round to one decimal place.

a. Ratio of fixed assets to long-termliabilities
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%

Answer & Explanation Solved by verified expert
4.3 Ratings (695 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

To solve the bid price problem presented in the text, we set the project NPV equal...

Biology
1.2K views

In the equation p + 2pq + q = 1, what does the term 2pq...

Physics
1.2K views

By using only two resistance coils singly in series or in parallel one should be...

Geometry
1.2K views

Solve each proportion round answers to the nearest tenth 5 3 6 1 12 7...

Basic Math
1.2K views

Major loss is always the main reason for headloss in pipe flows Select one O...

Calculus
1.2K views

The following formula gives the total surface area S of a cylinder with radius r...

Algebra
1.2K views

The optimal height h of the letters of a message printed on pavement is given...

Accounting
1.2K views

I got to get the details of this otherwise I will flunk the whole semsester...

Accounting
1.2K views

5. The reserve requirement, open market operations, and the money supply Assume that banks do...

Accounting
1.2K views

This balance sheet is IFRS compliant. Using fictitious numbers, what changes would need to be...

Accounting
1.2K views

Seaver Corporation manufactures snowboards. It has fixed costs of $4,140,000. Seavers unit cost and sales...

Accounting
1.2K views

1. Patton Corporation had the following items on its financial statements for two recent years:...