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. Selected Financial Ratios - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA ? - REVIEW VIEW Paste Clipboard Calibri BIU 10 ' ' % Alignment Number Conditional Format as Cell Cells Formatting Table Styles Editing A1 Font fx Styles Recent financial statements for Zimmer, Inc. are as follows: A B ] E Sign In F 5 Assets 6 Current assets: 7 Cash 8 Marketable securities 9 Accounts receivable, net 10 Inventory 11 Other current assets $ 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 12 Total current assets 13 Plant and equipment, net 14 Other assets 15 Total assets 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 16 Liabilities and Stockholders' Equity Interest expense 60,000