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

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

90.2K

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)$1,238,900
Liabilities:
Current liabilities$190,000
Note payable, 6%, due in 15 years953,000
Total liabilities$1,143,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)$1,143,000
Common stock, $10 par (no change during year)1,143,000
Retained earnings:
Balance, beginning of year$1,220,000
Net income479,000$1,699,000
Preferred dividends$45,720
Common dividends129,280175,000
Balance, end of year1,524,000
Total stockholders' equity$3,810,000
Sales$23,179,200
Interest expense$57,180

Assuming that total assets were $4,705,000 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
3.9 Ratings (554 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

Accounting
1.2K views

Completion of a Work Sheet Showing a Net Loss 1. Complete theAdjustments columns. 2....

Psychology
1.2K views

Name the characteristics of each of the three types of bipolar disorder.

Biology
1.2K views

A An is a set of formats consisting of such things as fonts font colors...

Biology
1.2K views

came during the O Potsdam Conference O Yalta Conference O signing of Treaty of Versailles...

Physics
1.2K views

23 A system consists of two cubes of masses my and m2 respectively connected by...

Statistics
1.2K views

The average starting salary of this year s MBA students is 55 000 with a...

Calculus
1.2K views

Evaluate the integral 26 36 24 26 3 A Which trig substitution is correct for...

Algebra
1.2K views

The customers preferred apples to bananas by a ratio of four to three A total...

Accounting
1.2K views

credit terms : 5, 1/15, n/45 what is the rate of the trade discount?

Accounting
1.2K views

A company that produces a large number of standardized units would normally use a job...

Accounting
1.2K views

2. Write all formula's you have learned to calculate curvature

Finance
1.2K views

Please show any Financial calculator inputs. QUESTION 17 You form the following investment portfolio:...