After calculating the ratios for Smolira Golf, you have uncovered the following industry ratios for 2014:

How is Smolira Golf performing based on these ratios?

Transcribed Image Text:

Lower Quartile Median Upper Quartile Current ratio Total asset turnover Debt-equity ratio Profit margin 1.3 2.6 2.7 5.3 4.1 .1 .25 8.4% .50 .60 11.9% 16.3% SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 2014 Liabilities and Owners' Equity Current assets Current liabilities $ 4,607 4,910 8,149 17,35719,350 Accounts payable Notes payable Other S 3,413 3,846 3,416 165 S 6,319 7427 $22,500 19,000 6,702 Accounts receivable Inventony 2,768 138 Total $28,666 32,409 Long-term debt Owners' equity Common stock $38,000 38,000 44,792 $58,535 82,792 $87.354 $109.219 Total Sabilitios and ownors' oquity 87.354 $109.219 and paid-in surplus Fixed assets Accumulated retained earnings 20,535 Net plant and equipment Total assets 58,688 76,810 Total SMOLIRA GOLF, INC. 2014 Income Statement Sales Cost of goods sold $205,227 138,383 5,910 S 60,934 1,617 S 59,317 20,760 S 38,557 EBIT Interest paid Taxable income Net income Dividends Retained earnings $14,300 24,257