Excel SIM: Selected Financial Ratios 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. points SS.fi FILE HOME INSERT ? X Selected Financial Ratios - Excel FORMULAS DATA REVIEW - Sign In eBook PAGE LAYOUT VIEW Print * Calibri -110 A = % D D References Paste B I U - - - A - Alignment Number C Editing Conditional Format as Cell Formatting Table Styles Styles Cells - Clipboard Font C45 Zimmer Company Income Statement Last Year This Year 1 Recent financial statements for Zimmer, Inc. are as follows: Zimmer Company Comparative Balance Sheet This Year 5 Assets 6 Current assets: 7 Cash 360,000 8 Marketable securities 220,000 9 Accounts receivable, net 775,000 $ 310,000 Sales (all on account) 80,000 Cost of goods sold 700,000 Gross margin $4,980,000 2,988,000 1.992,000 Paste B I U. - A Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font C45 v A $4,980,000 2.988,000 1.992.000 Cash Marketable securities Accounts receivable, net Inventory 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: Accounts payable Short-term bank loans Accrued payables 21 Other current liabilities 22 Total current liabilities 23 Bonds payable, 10% Total liabilities 25 Stockholders' equity: Common stock E 360,000 $ 310,000 Sales (all on account) 220,000 80,000 Cost of goods sold 775,000 700,000 Gross margin 925,000 750,000 Selling and administrative expenses 355,000 195,000 Operating expenses 2,635,000 2,035,000 Depreciation and amortization 1.975,000 1,800,000 General and administrative expenses 75.000 100.000 Total selling and administrative expenses 4,685,000 $_3.935,000 Net operating income Interest expense Net income before taxes 250,000 $ 225,000 Income taxes 750,000 600,000 Net income 550,000 395,000 275.000 223.400 Additional information: 1,825,000 1,443,400 Dividend per share paid in current year 575,000 400.000 Market price of shares at year end 2,400,000 1,843,400 Par value of common stock per share 985,500 410,500 150,000 1,546,000 446,000 60.000 386,000 135,100 $_250.900 $ 1.00 42.00 20.00 1,150,000 1,150,000 Number of shares outstanding 27 Retained earnings 28 Total stockholders' equity 29 Total liabilities and stockholders' equity 1,135,000 2,285,000 4.685.000 941.600 2,091,600 $ 3.935.000 31 Required: 32 Compute the following ratios for the current year only: 33 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 ratio (rounded to two decimal places) Average sales period (rounded to the nearest whole day) 40 Debt-to-equity ratio (rounded to two decimal places) Times interest earned (rounded to two decimal places) 42 Book value per share (rounded to two decimal places) Earnings per share (rounded to two decimal places) 44 Dividend payout ratio (rounded to three decimal places) Dividend yield ratio (rounded to three decimal places) Price-carnings ratio (rounded to two decimal places) 49 ... Sheet1 ... + # @ -- READY Attempt(s) + 100% Show Me 3/3 Hint