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...

80.2K

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)$1,990,800
Liabilities:
Current liabilities$220,000
Note payable, 6%, due in 15 years1,106,000
Total liabilities$1,326,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year)$1,326,000
Common stock, $10 par (no change during year)1,326,000
Retained earnings:
Balance, beginning of year$1,414,000
Net income623,000$2,037,000
Preferred dividends$26,520
Common dividends242,480269,000
Balance, end of year1,768,000
Total stockholders' equity$4,420,000
Sales$32,494,500
Interest expense$66,360

Assuming that total assets were $5,459,000 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
4.4 Ratings (710 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

Physics
1.2K views

4. Explain the processes of lasing in the Co2 laser. What is the function of Nitrogen,...

Advance Math
1.2K views

You need to complete the following SWOT analysis: Math Study Strategies Strengths Weakness Opportunities Threats Warm Up for Math class Learn new...

Biology
1.2K views

Identify each of the following reactions as an isomerization phosphorylation or phosphate transfer Drag the...

Geometry
1.2K views

28 Given WY XZ Prove WX YZ 1 WY XZ 2 WY XZ 3 WX...

Statistics
1.2K views

E and F are disjoint events then P E or F P E and F...

Calculus
1.2K views

In 1997 researchers at Texas A M University estimated the operating costs of cotton gin...

Calculus
1.2K views

A rectangular garden is 5 ft longer than it is wide Its area is 414...

Algebra
1.2K views

2 Use quaternion to determine the image of the point 1 1 1 under the...

Accounting
1.2K views

The amount of overhead applied to job P978 is closest to:

Accounting
1.2K views

Green Manufacturing Company produces a product that has a variable cost of $58 per unit....

Finance
1.2K views

Pfd Company has debt with a yield to maturity of 5.7%, a cost of equity...

Finance
1.2K views

The rent income account in the ledger of RT Stores reflected a total of R133...