2014 SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 4,607 $ 4,910 Accounts payable $ 3,413 Accounts receivable 6,702 8,149 Notes payable 2,768 Inventory 17,357 19,350 Other 138 Total $28,666 $ 32,409 Total $ 6,319 Long-term debt $22,500 Owners' equity Common stock and paid-in surplus $38,000 Fixed assets Accumulated retained earnings 20,535 Net plant and equipment 58,688 76,810 Total $58,535 Total assets $87.354 S109,219 Total liabilities and owners' equity $87,354 $ 3,846 3,416 165 $ 7,427 $ 19,000 $ 38,000 44,792 S 82,792 S109,219 SMOLIRA GOLF, INC. 2014 Income Statement Sales Cost of goods sold 5205.227 Depreciation 138.380 EBIT 5,910 Interest paid $ 60,934 Taxable income 1.517 $ 59,317 Taxes 20,760 Net income $ 38,557 Dividends $14,300 Retained earnings 24,257 L02 35. Calculating Financial Ratios. Find the following financial ratios for Sonolina Golf (use year-end figures rather than average values where appropriate Short-term solvency ratios a. Current ratio b. Quick ratio c. Cash ratio Asset utilization ratios d. Total asset turnover e Inventory turnover f Receivables turnover Long-term solvency ratios & Total debt ratio h. Debt-equity ratio 1. Equity multiplier Times interest earned ratio k. Cash coverage ratio Profitability ratios L. Profit margin m. Return on assets 1. Return on equity LO 3 36. DuPont Identity. Construct the DuPont identity for Smolita Golf LO 2 37. Market Value Ratios. Smolira Golf has 10.000 shares of common stock outstanding, and the market price for a share of stock at the end of 2014 was $73. What is the price-earnings ratio? What is the price-sales ratio? What are the dividends per share? What is the market-to-book ratio at the end of 2014? L02 38. Interpreting Financial Ratios. After calculating the ratios for Smolira Golf, you have uncovered the following industry ratios for 2014: Median Upper Quartile Lower Quartile 26 5.3 Current ratio 1.3 2.1 27 Total asset turnover 25 50 Debt-equity ratio 16.3% 8.4% 11.99 Profit margin 4.1