C H A P T E R 3 Working with Financial Statements 91 SMOLIRA GOLF, INC. 2016 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income $205,227 138,383 5.910 $ 60,934 1.617 59,317 20.760 $ 38,557 Dividends $14,300 24,257 Additions to retained earnings LO 2 35. Calculating Financial Ratios. Find the following financial ratios for Smolira Golf (use year-end figures rather than Short-term solvency ratios average values where appropriate): 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 g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned ratio k. Cash coverage ratio Profitability ratios L. Profit margin Return on assets Return on equity m. n. identity for Smolira Golf. C H A P T E R 3 Working with Financial Statements 91 SMOLIRA GOLF, INC. 2016 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income $205,227 138,383 5.910 $ 60,934 1.617 59,317 20.760 $ 38,557 Dividends $14,300 24,257 Additions to retained earnings LO 2 35. Calculating Financial Ratios. Find the following financial ratios for Smolira Golf (use year-end figures rather than Short-term solvency ratios average values where appropriate): 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 g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned ratio k. Cash coverage ratio Profitability ratios L. Profit margin Return on assets Return on equity m. n. identity for Smolira Golf