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 5 ? Selected Financial Ratios - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA Sign In REVIEW VIEW X M Calibri 10 % AA Cells Editing Paste BIU- BE - Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font Al Recent financial statements for Zimmer, Inc. are as follows: F B C 1 E A 15 Total assets 4.685.000 53.925.000 Net operating income Interest expense Net income before taxes 446.000 60,000 386,000 135.100 S150.900 16 Liabilities and Stockholders' Equity 17 Current Liabilities 16 Accounts payable 19 Short-term bank loans 20 Accrued payables 21 Other current liabilities S 250,000 $ 750,000 550.000 275.000 225,000 income taxes 600,000 Net Income 395,000 223,400 Additional information 3 Prev Nex s 1.00 42.00 20.00 22 Total current liabilities 1,825,000 1,443,400 Dividend per share paid in current year 23 Bonds payable, 10% 575 000 400.000 Market price of shares at year end 24 Total liabilities 2.400.000 1,843 400 Par value of common stock per share 25 Stockholders' equity 26 Common stock 1,150,000 1,150,000 Number of shares outstanding 27 Retained earnings 1135,000 941,600 28 Total stockholders' equity 2,285,000 2091 600 29 Total liabilities and stockholders' equity S 4.685.000 53.995.000 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 davi 40 Debt-to equity ratio (rounded to two decimal places) 41 Times interest earned (rounded to two decimal places) 42 Book value per share (rounded to two decimal places) 43 Earnings per share (rounded to two decimal places) 44 Dividend payout ratio (rounded to three decimal places) 45 Dividend yield ratio (rounded to three decimal places) 46 Price-earnings ratio (rounded to two decimal places) A7