1. Compute and interpret financial ratios that managers use to assess liquidity.
2. Compute and interpret financial ratios that managers use for asset management purposes.
3. Compute and interpret financial ratios that managers use for debt management purposes.

Selected Financial Ratios - Excel X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Hibri 10 PaMic &- A Alignment Number Conditional Format as Cell Cells Formatting ~ Table Styles Clipboard Font Styles A1 V Recent financial statements for Zimmer, Inc. are as follows: B C E F Recent linancial statements for Zimmer, Inc. are as follows: Zimmer Company Zimmer Company Comparative Balance Sheet Income Statement This Year Last Year This Year 5 Assets Current assets: Cash 340 000 310,000 Sales (all on account) $ 4,900,000 Marketable securities 220.000 80,000 Cost of goods sold 2.988.000 Accounts receivable, net 775 000 700,000 Gross margin 1,992,0OO 10 Inventory 925 000 750,000 Selling and administrative expenses 11 Other current assets 055 000 195,000 Operating expenses 905,500 12 Total current assets 2,635,000 2,035,000 Depreciation and amortization 410,500 13 Plant and equipment, net 1,975.000 1,800,000 General and administrative expenses 150,0O0 14 Other assets 75 000 100.000 Total selling and administrative expenses 1.546.000 15 Total assets 4.685 000 1 3.035.000 Net operating income 445,000 16 Liabilities and Stockholders Equity Interest expense 60.DOD 17 Current Liabilities Net income before taxes 386,000 18 Accounts payable 250 000 225,000 Income taxes 135,100 19 Short-term bank loans 750.000 600,000 Net income $ 250.900 20 Accrued payables 590 000 195,000 21 Other current liabilities 275 000 223,400 Additional information: 22 Total current liabilities 1,825 000 1,441,400 Dividend per share paid in current year L.00 23 Bonds payable, 10* 575 000 400.000 Market price of shares at year end 42.00 Sheet1 READY + Attempt[=] Hint Show Me