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Some recent financial statements for Earl Grey Golf Corp. follow. EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Assets Liabilities and Owners
Some recent financial statements for Earl Grey Golf Corp. follow.
EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position | ||||||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Current assets | Current liabilities | |||||||||||||||
Cash | $ | 24,046 | $ | 24,255 | Accounts payable | $ | 23,184 | $ | 27,420 | |||||||
Accounts receivable | 12,448 | 15,235 | Notes payable | 12,000 | 10,800 | |||||||||||
Inventory | 25,392 | 27,155 | Other | 11,571 | 15,553 | |||||||||||
Total | $ | 61,886 | $ | 66,645 | Total | $ | 46,755 | $ | 53,773 | |||||||
Long-term debt | $ | 80,000 | $ | 95,000 | ||||||||||||
Fixed assets | Owners equity | |||||||||||||||
Net plant and equipment | $ | 324,695 | $ | 365,734 | Common stock and paid-in surplus | $ | 40,000 | $ | 40,000 | |||||||
Retained earnings | 219,826 | 243,606 | ||||||||||||||
Total | $ | 259,826 | $ | 283,606 | ||||||||||||
Total assets | $ | 386,581 | $ | 432,379 | Total liabilities and owners equity | $ | 386,581 | $ | 432,379 | |||||||
EARL GREY GOLF CORP. 2018 Statement of Comprehensive Income | |||||||
Sales | $ | 366,996 | |||||
Cost of goods sold | 253,122 | ||||||
Depreciation | 32,220 | ||||||
Earnings before interest and tax | $ | 81,654 | |||||
Interest paid | 14,300 | ||||||
Taxable income | $ | 67,354 | |||||
Taxes (35%) | 23,574 | ||||||
Net income | $ | 43,780 | |||||
Dividends | $ | 20,000 | |||||
Additions to retained earnings | 23,780 | ||||||
Find the following financial ratios for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.)
Short-term solvency ratios: | 2017 | 2018 | |
a. | Current ratio | times | times |
b. | Quick ratio | times | times |
c. | Cash ratio | times | times |
Asset utilization ratios: | |||
d. | Total asset turnover | times | |
e. | Inventory turnover | times | |
f. | Receivables turnover | times | |
Long-term solvency ratios: | 2017 | 2018 | |||
g. | Total debt ratio | times | times | ||
h. | Debtequity ratio | times | times | ||
i. | Equity multiplier | ||||
j. | Times interest earned | times | |
k. | Cash coverage ratio | times | |
Profitability ratios: | |||
l. | Profit margin | % | |
m. | Return on assets | % | |
n. | Return on equity | % |
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