EC300 Homework 2 (Due date: Tuesday, September 15) Use the following financial statements to answer all the questions on the homework. 2019 Smolira Golf, Inc. Balance Sheets as of December 31, 2018 and 2019 2018 Assets Current assets Cash $4,670 Accounts receivable 6,702 Inventory 17,357 Total $28,666 Fixed assets Net plant and equipment $58,688 Total assets $87,354 $4.910 8,149 19,350 $32,409 $76,810 $109,219 $3,848 3,581 $7,427 $19,000 Liabilities and owners' equity Current liabilities Accounts payable $3,413 Notes payable 2,906 Total $6,319 Long-term debt $22,500 Owners' equity Common stock and paid-in surplus $38,000 Accumulated retained earnings 20,535 Total $58,535 Total liabilities and owners' equity $87,354 $38,000 44,792 $82,792 $109,219 Smolira Golf, Inc. 2019 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $205,227 138,383 5,910 $60,934 1,617 $59,317 20,760 $38,557 $14,300 24.257 EC300 Homework 2 (Due date: Tuesday, September 15) Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate). Find the ratios for both 2018 and 2019 when appropriate. Short-term solvency ratios 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 1. Profit margin m. Return on assets n. Return on equity EC300 Homework 2 (Due date: Tuesday, September 15) Construct the Dupont identity for Smolira Golf Smolira Golf has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $73. What is the price-earnings ratio? What is the price-sales ratio? What is the market-to-book ratio at the end of 2019