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 ? - X REVIEW VIEW Sign In Calibri 10 ' ' % Paste BIU Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing Clipboard G Font Styles A1 fx Recent financial statements for Zimmer, Inc. are as follows: > A B C [ E F . G 4 5 Assets 6 Current assets: 7 Cash 8 00 a Marketable securities 9 Accounts receivable, net 123 in 1 Recent financial statements for Zimmer, Inc. are as follows: Zimmer Company Comparative Balance Sheet This Year Last Year Zimmer Company Income Statement This Year 360,000 $ 220,000 310,000 Sales (all on account) $4,980,000 80,000 Cost of goods sold 2,988,000 775,000 700,000 Gross margin 1,992,000 10 Inventory 11 Other current assets 925,000 355,000 195,000 750,000 Selling and administrative expenses Operating expenses 985,500 12 Total current assets 13 Plant and equipment, net 14 Other assets 2,635,000 2,035,000 Depreciation and amortization 410,500 1,975,000 1,800,000 General and administrative expenses 150,000 15 Total assets S 75,000 4,685,000 $3,935,000 100,000 Total selling and administrative expenses 1,546,000 Net operating income 446,000 16 Liabilities and Stockholders' Equity Interest expense 60,000 17 Current Liabilities: Net income before taxes 386,000 18 Accounts payable 250,000 $ 225,000 Income taxes 135,100 19 Short-term bank loans 750,000 600,000 Net income $ 250,900 20 Accrued payables 550,000 395,000 21 Other current liabilities 275,000 223,400 Additional information: 22 Total current liabilities 1,825,000 23 Bonds payable, 10% 575,000 24 Total liabilities 2,400,000 1,443,400 Dividend per share paid in current year 400,000 Market price of shares at year end 1,843,400 Par value of common stock per share $ 1.00 42.00 20.00 Sheet1 READY Attempt(s) EI Hint + 78% Show Me