Smorlia Golf Inc Balance sheet

5. a) What was the firm's profit margin in 2016?

5. b) What was the total asset turnover in 2016?

5. c) What was the firm's equity multiplier in 2016?

5. d) How can you use the ratios you calculated in parts a-c to determine the Return on Equity using the DuPont Identity?

Smolira Golf 2015 and 2016 Balance Sheets Assets Liabilities and Owners' Equity 2016 2015 2015 2016 Current assets Current liabilities Cash $21,860 22,050 Accounts payable 19,320 22,850 Accounts 10,000 9,000 receivable 11,316 13,850 Notes payable Inventory 23,084 24,650 Other 9,643 11.385 $56,260 60,550 38,963 43,235 Total Total 75,000 85,000 Long-term debt Owners' equity Common stock and 25,000 25,000 paid-in surplus Accumulated retained earnings 151,365 167,840 Fixed assets Net plant and $176,365 $192,840 equipment 234,068 260,525 Total Total liabilities and Total assets $290,328 $321,075 owners' equity $290,328 $321,075 Smolira Golf 2016 Income Statement $305,830 Sales Cost of goods sold 210,935 26,850 Depreciation Earnings before interest and taxes 68,045