Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Liabilities and owners' Equity Assets 2014 2015 2014
Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Liabilities and owners' Equity Assets 2014 2015 2014 2015 Current assets Current liabilities 24,106 24,700 23,784 27,700 Cash Accounts payable Accounts receivable 13,048 15,800 Notes payable 16,000 11,400 27,700 Inventory 26,342 Other 12,171 15,900 63,496 68,200 51,955 55,000 Total Total 775,000 90,000 Long-term debt Owners' equity Common stock and paid-in surplus 45,000 45,000 Accumulated retained earnings 222,236 242,000 Fixed assets $267,236 $287,000 $330,695 $363,800 Net plant and equipment Total $394,191 $432,000 $394,191 $432,000 Total assets Total liabilities and owners' equity SMOLIRA GOLF CORP 2015 Income Statement $367,234 Sales Cost of goods sold 235,500 Depreciation 38,600 93,134 Earnings before interest and taxes Interest paid 14,900 Taxable income 78,234 Taxes (30%) 23,470 54,764 Net income 35,000 Dividends Retained earnings 19,764 Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Enter your profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.) Short-term solvency ratios: 1.22 times 1.24 times a. Current ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started