Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF 2011 and 2012 Balance Sheets Assets Liabilities and Owners Equity 2011 2012 2011 2012

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF 2011 and 2012 Balance Sheets
Assets Liabilities and Owners Equity
2011 2012 2011 2012
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
Owners equity
Common stock and paid-in surplus $ 40,000 $ 40,000
Accumulated retained earnings 219,826 243,606
Fixed assets
Net plant and equipment $ 324,695 $ 365,734 Total $ 259,826 $ 283,606
Total assets $ 386,581 $ 432,379 Total liabilities and owners equity $ 386,581 $ 432,379
SMOLIRA GOLF, INC. 2012 Income Statement
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
Dividends $ 20,000
Retained earnings 23,780

The company's profit margin is___________ percent. (Use year-end figures rather than average values where appropriate.Round your answer to 2 decimal places.

Total asset turnover is ________________. (Round your answer to 2 decimal places

Equity multiplier is_________ . (Round your answer to 2 decimal places.

Using the Du Pont Identity, the company's ROE is_________ percent.Round your answer to 2 decimal places. (e.g., 32.16))

Thanks! :)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Middle Market M And A Handbook For Advisors Investors And Business Owners

Authors: Kenneth H. Marks, Christian W. Blees, Michael R. Nall, Thomas A. Stewart

2nd Edition

1119828104, 978-1119828105

More Books

Students also viewed these Finance questions

Question

4. Devise an interview strategy from the interviewers point of view

Answered: 1 week ago