Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP.

2014 and 2015 Balance Sheets

Assets Liabilities and Owners Equity

2014 2015 2014 2015

Current assets Current liabilities

Cash $ 23,046 $ 25,100 Accounts payable $ 24,184 $ 28,100

Accounts receivable 13,448 16,200 Notes payable 20,000 11,800

Inventory 26,822 28,100 Other 12,571 19,100

Total $ 63,316 $ 69,400 Total $ 56,755 $ 59,000

Longterm

debt $ 79,000 $ 90,000

Owners equity

Common stock and paidin

surplus $ 48,000 $ 48,000

Accumulated retained earnings 214,256 237,000

Fixed assets

Net plant and equipment $334,695 $364,600 Total $262,256 $285,000

Total assets $ 398,011 $434,000 Total liabilities and owners equity $ 398,011 $434,000

SMOLIRA GOLF CORP.

2015 Income Statement

Sales $349,760

Cost of goods sold 241,500

Depreciation 27,200

Earnings before interest and taxes $ 81,060

Interest paid 15,300

Taxable income $ 65,760

Taxes (35%) 23,016

Net income $ 42,744

Dividends $ 20,000

Retained earnings 22,744

Find the following financial ratios for Smolira Golf Corp. (use yearend

figures rather than average values

where appropriate): Enteryourprofitabilityratioanswersasapercentroundedto2decimalplaces

eg3216Roundtheremaininganswersto2decimalplaceseg3216

Shortterm

solvency ratios: 2014 2015

aCurrent ratio times times

bQuick ratio times times

cCash ratio times times

Asset utilization ratios:

dTotal asset turnover times

eInventory turnover times

fReceivables turnover times

Longterm

solvency ratios: 2014 2015

gTotal debt ratio times times

hDebtequity ratio times times

Advanced Managerial Finance: Online O 3.2 Nathan Youngblood

4/3/2017 2.6 Chapter 3 Homework

http://ezto.mheducation.com/hm.tpx 2/2

iEquity multiplier times times

jTimes interest earned times

kCash coverage ratio times

Profitability ratios:

IProfit margin %

mReturn on assets %

nReturn on equity %