The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
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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 | $2,500,000 | ||||
Preferred dividends | $100,000 | |||||
Common dividends | 400,000 | 500,000 | ||||
Balance, end of year | 2,000,000 | |||||
Total stockholders’ equity | $5,000,000 | |||||
Sales | $18,900,000 | |||||
Interest expense | $120,000 |
Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.
a. Ratio of fixed assets to long-term liabilities | |
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 | % |
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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