1. Compute and interpret financial ratios that managers use to assess liquidity. 2. Compute and interpret financial ratios that managers use for asset management purposes. 3. Compute and interpret financial ratios that managers use for debt management purposes. FILE HOME INSERT Calibri Paste BIU Clipboard Selected Financial Ratios - Excel ? PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In -10 AA % A- Alignment Number Conditional Format as Cell Formatting- Table Styles Cells Editing Font Styles fx Recent financial statements for Zimmer, Inc. are as follows: A B 1 Recent financial statements for Zimmer, Inc. are as follows: 12345 5 Assets Zimmer Company Comparative Balance Sheet This Year Last Year 6 Current assets: 7 Cash 8 Marketable securities 9 Accounts receivable, net 10 Inventory 11 Other current assets 12 Total current assets 13 Plant and equipment, net 14 Other assets 15 Total assets 16 Liabilities and Stockholders' Equity 17 Grant I ishilitiae B F Zimmer Company Income Statement This Year $ 360,000 $ 310,000 Sales (all on account) $4,980,000 220,000 80,000 Cost of goods sold 2,988,000 775,000 700,000 Gross margin 1,992,000 925,000 750,000 Selling and administrative expenses 355,000 195,000 Operating expenses 985,500 2,635,000 2,035,000 Depreciation and amortization 410,500 1,975,000 1,800,000 General and administrative expenses 150,000 75,000 100,000 Total selling and administrative expenses 1,546,000 4,685,000 $3,935,000 Net operating income 446,000 60,000 Interest expense Nat innama hafara tavae blaut 286000 Paste Clipboard Al Calibri BIU- 10 . AA Font fx 4 96 Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Recent financial statements for Zimmer, Inc. are as follows: A B C E 18 Accounts payable $ 250,000 $ 225,000 Income taxes 19 Short-term bank loans 750,000 600,000 Net income F 135,100 $ 250,900 20 Accrued payables 550,000 395,000 21 Other current liabilities. 22 Total current liabilities 23 Bonds payable, 10% 24 Total liabilities 25 Stockholders' equity: 275,000 1,825,000 575,000 2,400,000 223,400 Additional information: 1,443,400 400,000 1,843,400 Dividend per share paid in current year Market price of shares at year end Par value of common stock per share $ 1.00 42.00 20.00 26 Common stock 27 Retained earnings 1,150,000 1,150,000 Number of shares outstanding 1,135,000 2,285,000 941,600 2,091,600 4,685,000 $3,935,000 28 Total stockholders' equity 29 Total liabilities and stockholders' equity 30 31 Required: 32 Compute the following ratios for the current year only: 33 Gross margin percentage 34 Current ratio (rounded to two decimal places) 35 Acid-test ratio (rounded to two decimal places) 36 Accounts receivable turnover (rounded to two decimal places) 37 Average collection period (rounded to the nearest whole day) 38 Inventory turnover ratio (rounded to two decimal places) 39 Average sales period (rounded to the nearest whole day) 0 Debt-to-equity ratio (rounded to two decimal places) Sheet1 READY Attempt(s) E 100% Hint