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. 1 Recent financial statements for Zimmer, Inc. are as follow 2 Zimmer Company 3 Comparative Balance Sheet 4 This Year Zimmer Company Income Statement This Year Last Year $ $4.980.000 2,988 000 1.992.000 985,500 410.500 150.000 1.546.00 446,000 5 Assets 6 Current assets: 7 Cash 8 Marketable securities 9 Accounts receivable, et 10 Inventory 11 Other current assets 12 Total current assets 13 Plant and equipment, net 14 Other assets 15 Total assets 16 Llabilities and Stockholders' Equity 17 Current Liabilities: 18 Accounts payable 19 Short-term bank loans 20 Accrued payables 21 Other current liabilities 22 Total current liabilities 23 Bonds payable, 10% Sheet1 S 360.000 $ 310,000 Sales (all on account) 220.000 80,000 Cost of goods sold 775.000 700.000 Gross margin 925.000 750.000 Selling and administrative expenses 3552 195.00 Operating expenses 2635.000 2,035.000 Depreciation and amortization 1975.000 1,800,000 General and administrative expenses 75 000 100.000 Total selling and administrative expenses 4.685. S.3.935.000 Net operating income Interest expense Net income before taxes 250.000 $ 225.000 Income taxes 750.000 600.000 Net income 550.000 395,000 275000 223.400 Additional information: 1.825.000 1,443,400 Dividend per share paid in current year 575.000 400.000 Market price of shares at year end 386,000 135.100 S250.000 $ $ 1.00 42.00 100% READY Attempt(s) 0/3 Hint 20.00 A Par value of common stock per share Number of shares outstanding ts eBook Beforences B 2.400.000 1843 400 24 Total liabilities 25 Stockholders' equity: 26 1.150.000 1.150.000 Common stock 27 11350XXO 941.600 Retained earnings 28 Total stockholders' equity 2.285.000 2.091.600 29 Total liabilities and stockholders' equity 4.685.000 $3.925.000 30 31 Required: 32 Compote the following ratios for the current yeat only 33 Gross margin percentage 4096 34 Current ratio (rounded to two decimal places) 1.44 35 Acid-test ratio (rounded to two decimal places) 0.74 36 Accounts receivable turnover (rounded to two decimal places) 6.75 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) 40 Debt-to-oqalty 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 shume (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) Sheet1 READY Attempt(s) L 100% Hint