Explanation: Tax rate 35% 26) Short-term solvency ratios: 2010 Current ratio 2011 Current ratio Assets 2010 2011 2010 Quick ratio 2011 Quick ratio $ Current assets Cash Accounts receivable Inventory Total 21.860 11.316 23.084 56.260 SMOLIRA GOLF CORP. 2010 and 2011 Balance Sheets Liabilities and owners' equity 2011 2010 Current liabilities $ 22.050 Accounts payable $ 19.320 13.850 Notes payable 10.000 24.650 Other 9.643 $ 60.550 Total $ 38.963 Long-term debt 75.000 Owners' equity Common stock and paid-in surplu $ 25.000 Accumulated retained earnings 151.365 260.525 Total $ 176.365 $ 321.075 Total liabilities and owners' equity $ 290.328 22.850 9.000 11.385 43.235 85.000 $ 2010 Cash ratio 2011 Cash ratio $ Asset utilization ratios: $ Fixed assets Net plant and equipment Total assets 25.000 167.840 192.840 321.075 234.068 $ 290.328 $ $ Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios: SMOLIRA GOLF CORP. 2011 Income statement 2010 Total debt ratio 2011 Total debt ratio SMOLIRA GOLF, INC. Statement of Cash Flows For Period Ending December 31, 2011 2010 Debt-equity ratio 2011 Debt-equity ratio Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes (35%) Net income $ 305.830 210.935 26.850 $ 68.045 11.930 $ S 56.115 19.640 $ 36.475 2010 Equity mulitplier 2011 Equity multiplier Times interest earned ratio Cash coverage ratio $ Dividends Retained earnings 20.000 16.475 Profitability ratios: Profit margin Return on assets Return on equity DuPont Identity Return on equity