Question
Q.1 Financial statements for Smolira Golf Corp. are given below. SMOLIRA GOLF CORP. Balance Sheet for Dec 31, 2012 Assets Liabilities and Owners Equity Current
Q.1 Financial statements for Smolira Golf Corp. are given below.
SMOLIRA GOLF CORP. Balance Sheet for Dec 31, 2012 | |||
Assets | Liabilities and Owners Equity | ||
Current assets |
| Current liabilities |
|
Cash | $24,255 | Accounts payable | $27,420 |
Accounts receivable | 15,235 | Notes payable | 10,800 |
Inventory | 27,155 | Other | 15,553 |
Total | 66,645 | Total | 53,773 |
|
| Long-term debt | $95,000 |
|
| Owners equity |
|
|
| Common stock and paid-in surplus |
$40,000 |
Fixed assets |
| Accumulated Retained earnings |
243,606 |
Net plant and equipment | 365,734 | Total | $283,606 |
Total assets |
$432,379 | Total liabilities and owners equity |
$432,379 |
SMOLIRA GOLF CORP. Income Statement for the period of December 2012. | |
| |
Sales | $366,996 |
Cost of goods sold | 253,122 |
Depreciation | 32,220 |
Earnings before interest and taxes | $81,654 |
Interest paid | 14,300 |
Taxable Income | $67,354 |
Taxes (35%) | 23,574 |
Net Income | $43,780 |
Required:
Evaluate and interpret Short-term solvency ratios, Asset utilization ratios, Long-term solvency ratios and Profitability ratios from the given financial information. (8 Marks)
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