Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
2020 2021 Assets Current assets Cash Accounts receivable Inventory SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities
2020 2021 Assets Current assets Cash Accounts receivable Inventory SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities $ 24,116 $ 24,800 Accounts payable 13,148 15,900 Notes payable 26,392 27,800 Other $ 23,884 $ 27,800 17,000 11,500 12,271 15,700 Total $ 63,656 $ 68,500 Total $ 53,155 $ 55,000 Long-term debt $ 76,000 $80,259 Owners' equity Common stock and paid-in surplus $ 40,000 $ 40,000 Accumulated retained earnings 226,196 258,741 Fixed assets Net plant and equipment $331,695 Total $ 266,196 $ 298,741 365,500 Total assets $ 395,351 $ 434.000 Total liabilities and owners' equity $395,351 434,000 SMOLIRA GOLF CORPORATION 2021 Income Statement Sales Cost of goods sold Depreciation $ 396,340 256,000 49,000 SMOLIRA GOLF CORPORATION 2021 Income Statement Sales Cost of goods sold Depreciation $ 396,340 256,000 49,000 Earnings before interest and taxes Interest paid $ 91,340 15,000 Taxable income Taxes (22%) $ 76,340 16,795 Net Income $ 59,545 Dividends Retained earnings $ 27,000 32,545 Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.) Asset utilization ratios: times d. Total asset turnover e. Inventory turnover f. Receivables turnover times times Long-term solvency ratios: g. Total debt ratio h. Debt-equity ratio i. Equity multiplier 2020 times times 2021 times times times times 1. Times interest earned k. Cash coverage ratio times times Profitability ratios: 1. Profit margin % m. Retum on assets % n. Return on equity
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bfe3390eed_187669bfe33313fd.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bfe344d9d7_187669bfe33db917.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bfe34f0604_188669bfe3482eab.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bfe35b7712_189669bfe3539776.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started