1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net...

Question

1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net Income $1,992,000 6

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

1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net Income Preferred di

1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net Income $1,992,000 688,000 $74,700 $2,680,000 Preferred dividends Common dividends 115,300 190,000 Balance, end of year 2,490,000 $6,225,000 Total stockholders' equity Sales $48,071,100 Interest expense $62,220 Assuming that total assets were $7,097,000 at the beginning of the current fiscal year, determine the following. When required, 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

Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. $1,555,500 Property, plant, and equipment (net) Liabilities: Current liabilities $208,000 1,037,000 Note payable, 6%, due in 15 years $1,245,000 Total liabilities $1,867,500 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year 1,867,500 $2,680,000 Net income $1,992,000 688,000 $74,700 115,300 Preferred dividends Common dividends 190,000 2,490,000 Balance, end of year Total stockholders' equity $6,225,000 $48,071,100 Sales

1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net Income Preferred dividends Common dividends Balance, end of year $2,680,000 $1,992,000 688,000 $74,700 115,300 190,000 2,490,000 Total stockholders' equity $6,225,000 Sales $48,071,100 Interest expense $62,220 Assuming that total assets were $7,097,000 at the beginning of the current fiscal year, determine the following. When required, 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

 · Answer


Ratio of Fixed Assets to long-term to long-term liabilities:
Total Fixed Assets/Total long-term liabilities	1.5	$1,555,500/$1,037,000

Ratio of Liabilities to stockholder's equity:
Total Liabilities / Total stockholder's equity:	0.2	$1,245,000/$6,225,000

Asset Turnover:
Net Sales / Average Total Assets	6.6	$48,071,100 / [($7,097,000+$7,470,000)/2]

Return on Assets:
Return on Assets =Net Income / Average Total Assets	9.4%	$688,000/$7,283,500

Return on equity:
Return on equity =Net Income / Average Shareholders equity	11.1%	$688,000/$6,225,000

Return on common stockholders equity:
Return on equity =Net Income / Average common Shareholders equity	15.5%	$688,000/($6,225,000-$1,867,500+$74,700)

.

1,867,500 Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net...

Question:

Answers

Similar Solved Questions

Dake Corporation's relevant range of activity is 2.300 units to 5,500 units. When it produces and...

Draw a detailed fbd with labels please list every step label all variables be as detailed...

Experiment related questions PART 1 Data: NR= no reaction NaNO, KNO Ca(NO3)2 Mg(NO3)2 Ba(NO3)2 Cu(NO3)2 AI(NO3)3...

4. 100 moles of C4Hs are burned with air at 25°C. If the reaction is maintained...

Indicate how the accounting treatment would be under US GAAP and IFRS in both situations. Post journal entries when necessary.

Bending stress are distributed on a rectangular cross section, as shown in the figure. The bending...

I need all these answers 8. A continuously monitors the distance by which the table or...

Price gouging laws will usually result in ________ the product in the distressed market more supply...

Rect Question 2 0/1 pts The money supply equals monetary base plus money multiplier. • monetary...

What are the main substitutes related to payroll industry & bookkeeping?

Question 5 b why tge elecric field lines are the same in both sides i dont...

Professionals at all levels of the health care system are working to grant patients greater involvement...

What is the value of Ky for the formate anion, HCOO ? Ka(HCOOH) = 2.1 x...

Convert the following measurement kg -- mol L 1.2 x 10 mol dL

3 0 2 -1 Find the orthogonal projection of onto 2 1. -2 2 Your answer...

How might a patient’s environment (e.g. living conditions, socioeconomic situation) relate to accurate diagnosis =?

1 Steam enters a well-insulated nozzle at 300 lbf/in.2, 600°F, with a velocity of 100 ft/s...

Question: Use Euclid's postulates to prove that your constructions for angle bisector and perpendicular bisector from...