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Q1. Financial Ratios

Find the following financial ratios for Smolira Golf Corp, (use year-end figures rather than average values where 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:

l. Profit margin ________

m. Return on assets ___________

n. Return on equity __________________

Q2. Du Pont Identity

Construct the Du Pont identity for Smolira Golf Corp.

Q3. Statement of Cash Flows

Prepare the 2018 statement of cash flows for Smolira Golf Corp.

Q4. Market Value Ratios

Smolira Golf Corp, has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $58. What is the price-earnings ratio? What are the dividends per share? What is the market-to-book ratio at the end of 2018? If the company's growth rale is 9 percent, what is the PEG ratio?

SMOLIRA GOLF CORP. 2017 2018 $ Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets 34,385 17,801 36,310 88,496 $ 37,837 27,766 42,632 $ 108,235 $ 464,315 $ 552,811 519,633 $ 627,868 $ $ Liabilities and owners' equity Current liabilities Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity 36,722 19,008 19,864 75,594 115,000 42,582 16,200 24,634 83,416 145,000 $ $ 55,000 307,217 $ 362,217 $ 552,811 $ 55,000 344,452 $ 399,452 $ 627,868 SMOLIRA GOLF CORP. 2018 Income statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income $ 506,454 359,328 44,463 $ 102,663 19,683 $ 82,980 20,745 $ 62,235 $ Dividends Retained earnings 25,000 37,235