Question
Find the following financial ratios for Smolira Golf Corp. Short-term solvency ratios Current ratio Quick ratio Cash ratio Asset turnover ratios Total asset turnover Inventory
- Find the following financial ratios for Smolira Golf Corp.
Short-term solvency ratios
- Current ratio
- Quick ratio
- Cash ratio
Asset turnover ratios
- Total asset turnover
- Inventory turnover
- Receivables turnover
Long-term solvency ratios
- Total debt ratio
- Equity multiplier
- Times interest earned ratio
- Cash coverage ratio
Profitability ratios
- Profit margin
- Return on assets
- Return on equity
Smolira Golf Corp
Balance Sheets as of December 31,2001 and 2002
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| 2001 | 2002 |
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| 2001 | 2002 |
Assets |
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| Liabilities & Equity |
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Current assets |
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| Current liabilities |
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Cash | $650 | $710 |
| Accounts payable | $987 | $1,215 |
Acc. receivable | $2,382 | $2,106 |
| Notes payable | $640 | $718 |
Inventory | $4,408 | $4,982 |
| Other | $90 | $230 |
Total | $7,440 | $7,798 |
| Total | $1,717 | $2,163 |
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| Long-term debt | $4,318 | $4,190 |
Fixed assets |
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| Owners' Equity |
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Net Plant & equipment | $13,992 | $18,584 |
| Common stock | $10,000 | $10,000 |
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| Retained earnings | $5,397 | $10,029 |
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| Total | $15,397 | $20,029 |
Total assets | $21,432 | $26,382 |
| Total | $21,432 | $26,382 |
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Smolira Golf Corp
2002 Income Statement
Sales | $28,000 |
Cost of goods sold | $11,600 |
Depreciation | $2,140 |
Earnings before interest and taxes | $14,260 |
Interest paid | $980 |
Taxable income | $13,280 |
Taxes (35%) | $4,648 |
Net Income | $8,632 |
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Dividends | $4,000 |
Addition to retained earnings | $4,632 |
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