Six Measures of Solvency or Profitability 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 Net income Preferred dividends Common dividends Balance, end of year 2,000,000 Total stockholders' equity $5,000,000 Sales $18,900,000 Interest expense $120,000 $1,570,000 930,000 (100,000) (400,000) Common dividends (400,000) 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 1.60 ✓ b. Ratio of liabilities to stockholders' equity 0.6 ✔ c. Asset turnover 4.2 d. Return on total assets 24.8 X % e. Return. stockholders' equity 18.6 X % f. Return on common stockholders' equity 23.25 X % Feedback Check My Work a Divide property plant and equipment (net) by long-term liabilities.