Some recent financial statements for Earl Grey Golf Corp. follow. Use this information to work on Problems 27 through 31. Page 106 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 12,448 15,235 Notes payable 12.000 10.800 Accounts receivable Inventory 25,392 27.155 Other 11,571 15,553 Total $ 61,886 $ 66,645 Total $ 46.755 $ 53,773 Fixed assets Net plant and equipment Long-term debt $ 80.000 $ 95.000 $324.695 $365,734 Owners' equity Common stock and $ 40.000 $ 40.000 paid-in surplus 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 27. Calculating Financial Ratios (L03) Find the following financial ratios for Earl Grey 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 Page 107 Long-term solvency ratios 3. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest carned ratio k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity