Transcribed Image Text: The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property,

Excerpt
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 Next Previous Check My Work

Transcribed Image Text: 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
$3,000,000
Total liabilities
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 $1,570,000 930,000 $2,500,000 Net income $100,000 Preferred dividends 400,000 500,000 Common dividends 2,000,000 Balance, end of year $5,000,000 Total stockholders' equity $18,900,000 Sales $120,000 Interest expense 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 Next Previous Check My Work

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