Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity 2017 2018 2017

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets Liabilities and Owners Equity
2017 2018 2017 2018
Current assets Current liabilities
Cash $ 34,385 $ 37,837 Accounts payable $ 36,722 $ 42,582
Accounts receivable 17,801 27,766 Notes payable 19,008 16,200
Inventory 36,310 42,632 Other 19,864 24,634
Total $ 88,496 $ 108,235 Total $ 75,594 $ 83,416
Long-term debt $ 115,000 $ 145,000
Owners equity
Common stock and paid-in surplus $ 55,000 $ 55,000
Accumulated retained earnings 307,217 344,452
Net plant and equipment $ 464,315 $ 519,633 Total $ 362,217 $ 399,452
Total assets $ 552,811 $ 627,868 Total liabilities and owners equity $ 552,811 $ 627,868

SMOLIRA GOLF CORP. 2018 Income Statement
Sales $ 506,454
Cost of goods sold 359,328
Depreciation 44,463
Earnings before interest and taxes $ 102,663
Interest paid 19,683
Taxable income $ 82,980
Taxes (25%) 20,745
Net income $ 62,235
Dividends $ 25,000
Retained earnings 37,235

The company's profit margin is percent. (Use year-end figures rather than average values where appropriate. Enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.) Total asset turnover is . (Round your answer to 2 decimal places, e.g., 32.16.)
Equity multiplier is . (Round your answer to 2 decimal places., e.g., 32.16.)
Using the DuPont Identity, the company's ROE is percent. (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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

Financial Accounting The Impact On Decision Makers

Authors: Gary A Porter, Curtis L Norton

8th Edition

1111534861, 9781111534868

More Books

Students also viewed these Finance questions