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. 6 FILE HOME INSERT VIEW Sign In Selected Financial Ratios - Excel PAGE LAYOUT FORMULAS DATA REVIEW Ruler Formula Bar q Gridlines Headings Zoom 100% Zoom to Selection Show Zoom Window Macros Normal Page Break Page Custom Preview Layout Views Workbook Views Macros > A1 y Recent financial statements for Zimmer, Inc. are as follows: F G H This Year $4,980,000 299.00 1992.00 E 2 Zimmer Company Zimmer Company 3 Comparative Balance Sheet Income Statement 4 This Last Year 5 issets 6 urrent assets: 7 Cash $ 360.000 $ 310.000 Sales all on account 8 Marketable securities 220.000 80.000 Cast of goods sold 9 Accounts receivable, net 775.000 700.000 Gross margin 10 Inventory 925.000 750,000 Selling and administrative expenses 11 Other current assets 355.RO Operating expenses 12 tal current assets 2.635.000 2.025.000 Depreciation and amaran 13 tant and equipment, net 1.975.000 1.800.000 General and administrative expenses 14 Ither assets RR Total selling and administrative expenses 15 tals AMARO SD Net income 16 labilities and Stockholders' Equity Interest expense 17 urrent Liabilities: Net Income before taxes 18 Accounts payable $ 250.000 $ 225.000 Income taxes 19 Short term bank loans 750,000 500.000 Net income 20 Accrued payables 550.000 395.000 21 Other current abilities 275.000 223.400 Addisonal information: 22 otal current les 1825.000 1,443,400 Dividend per share paid in current year 23 onds payable, 10 575.RO Market price of shares at year end 24 talabilities 2.400.000 1.843.400 Par value of common stock per share 25 tockholders' equity 26 Common stock 1.150.000 1.150.000 Number of shares outstanding 27 Retained earnings 1.135.000 941.500 28 stal stockholders' equity 2285 22091ER SR5,500 410,500 150.00 SANDRO 446,000 60.000 36,000 135.100 S2000 $ 1.00 42.00 20.00 Sheet1 40% READY Attempt(s) Hint Show Me Required: Compute the following ratios for the current year only Gross margin percentage Current ratio (rounded to two decimal places) Acid test ratio (rounded to two decimal places) Accounts receivable turnover (rounded to two decimal places) Average collection period (rounded to the nearest whole day! Inventory turnover ratto (rounded to two decimal places) Average sales period (rounded to the nearest whole day! Debt to equity ratio (rounded to two decimal places Times interest earned (rounded to two decimal places) Book value per share (rounded to two decimal places) Earnings per share (rounded to two decimal places) Dividend payout ratio (rounded to three decimal places) Dividend yield ratio (rounded to three decimal places) Price earnings rato (rounded to two decimal places