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2014 Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013

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2014 Some recent financial statements for Smolira Golf, Inc., follow. 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 3,846 3,416 165 7,427 $ 22,500 $ 19,000 Fixed assets Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 58,688 $ 76,810 Total $ 87,354 $109,219 Total liabilities and owners' equity $ 38,000 $ 38,000 20,535 44,792 Net plant and equipment Total assets $58,535 $ 82,792 $ 87,354 $ 109,219 SMOLIRA GOLF, INC 2014 Income Statement Sales $ Cost of goods sold Depreciation 205,227 138,383 5,910 $ EBIT Interest paid 60,934 1,617 $ Taxable income Taxes 59,317 20,760 Net Income $ 38,557 $ Dividends Retained eamings 14,300 24.257 Required: Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round Intermediate calculations. Round your answers to 2 decimal places (o... 32.16).) 2013 2014 Short-term solvency ratios a. Current ratio times times 38,557 Net income Dividends Retained eamings 14,300 24,257 Required: Find the following financial ratios for Smolira Golf (use year-end figures rather than average values whe appropriate): (Do not round Intermediate calculations. Round your answers to 2 decimal places 32.16).) 2013 2014 Short-term solvency ratios a. Current ratio 4.95 4.40 times times X 1.86 b. Quick ratio times 1.69 times x 0.56 times 0.71 times C. Cash ratio Asset utilization ratios d. Total asset turnover 1.80 times 9.30 times e. Inventory turnover 33.33 times f. Receivables tumover Long-term solvency ratios g. Total debt ratio 0.24 0.21 times h. Debt-equity ratio 0.31 0.27 times 1.31 1.27 times X 42.81 times i. Equity multiplier Times interest earned ratio k. Cash coverage ratio Profitability ratios 1. Profit margin 46.74 times 19.09 m. Return on assets 34.44 % n. Return on equity 46.63

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