A i |Recent financial statements for Zimmer, Inc. are as follows: ! B 2 Zimmer Company 3 Comparative Balance Shest 4 This Year 5 Assets & Current assets: 7 | cash 8 | Marketable securities 9 | Accounts rece ivable, net 10 | Inventory 11 | Other current assets 12 Total current assets 13 plant and equipment, net 14 Other assets 15 Total assets 16 Liabilities 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% 24 Total liabilities 25 Stockholders' equity: 26 Common stock 27 | Retained earnings 28 Total stockholders' equity 29 Total liabilities and stockholders' equity 30 A le . . s 360,000 220,000 775,000 975,000 355,000 2,635,000 1,975,000 75 000 s 250,000 750,000 550,000 275,000 1,825,000 575,000 1,150,000 1,135,000 2,285 000 Last Year $ 310,000 80,000 700,000 750,000 195,000 2,035,000 1,800,000 100,000 $ 225000 600,000 395,000 223400 1,443,200 400,000 1,843 200 1,150,000 041 6500 et Zimmer Company Income Statement Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Operating expenses Depreciation and amortization General and adminisirative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Additional information: Dividend per share paid in current year Market price of shares at yearend Par value of common stock per share Number of shares outstanding This Year 54,980,000 2,588,000 1,992 000 985,500 410,500 150,000 1,546 000 446,000 60,000 e S 386,000 135 100 s 1.00 42 00 20,00 31 32 33 34 35 36 37 38 39 41 42 43 a5 45 47 4z 50 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 rafio (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 tweo 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 ratio {rounded to two decimal places}) \f31 32 33 34 35 36 37 38 39 a1 42 43 45 a5 a7 48 49 50 51 52 53 Required: Compute the following liquidity ratios for 2016. Round to the required number of decimal places USING THE EXCEL. ROUND FUNCTION (fx). Current ratio (rounded to one decimal place) Receivables turnover (rounded to two decimal places) Days to collect (rounded to the nearest whole day) Inventory turnover (rounded to two decimal places) Days' sales in inventory (rounded to the nearest day) Compute the following Solvency Ratios for 2016. Again, USE THE EXCEL ROUND FUNCTION (fx). Debt to assets (rounded to two decimal places) Times interest earned (rounded to one decimal place) Compute the following Profitability Ratios for 2016. Again, USE THE EXCEL ROUND FUNCTION (fx). Profit margin ratio (rounded to one decimal place) Gross margin ratio (rounded to one decimal place) percent percent