Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the information below for the next question. Some recent statements for Smolira Golf, Inc. follow: SMOLIRA GOLF, INC. Balance Sheets as of December 31,
Consider the information below for the next question. Some recent statements for Smolira Golf, Inc. follow: SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2016 and 2017 As of December 31 Assets 2016 2017 ASSETS Current Assets Cash $4,607 $4,910 Accounts Receivable 6,702 8,149 Inventories 17,357 19,350 Total Current Assets $28,666 $32,409 Net Fixed Assets $58,688 $76,810 Total Assets $87,354 $109,219 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $3,413 $3,846 Notes Payable 2,768 3,416 Other 138 165 Total Current Liabilities $6,319 $7,427 Long-Term Debt $22,500 $19,000 Owners' Equity Par value and Paid-In Surplus $38,000 $38,000 Retained Earnings $20,535 $44,792 Total Stockholders' Equity $58,535 $82,792 $87,354 $109,219 Total Liabilities & Stockholders' Equity SMOLIRA GOLF, INC. 2017 Income Statement Sales $205,227 Less: Cost of Goods Sold 138,383 Less: Depreciation Expense 5,910 $60,934 Earnings Before Interest & Taxes (EBIT) Less: Interest Expense 1,617 Net Income Before Taxes $59,317 Less: Taxes (35%) 20,760 Net Income After Taxes $38,557 Dividends Paid $14,300 Retained Earnings $24,257 Round your answers to two decimal places. The return on equity for Smolira Golf for 2017 is OA) 19.52% B) 28.31% OC) 35.31% D) 46.57%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started