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. 2014 and 2015 Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014

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 $ 23,996 $ 25,600 Accounts payable $ 24,684 $ 28,600
Accounts receivable 13,948 16,700 Notes payable 16,000 12,300
Inventory 27,462 28,600 Other 13,071 19,100
Total $ 65,406 $ 70,900 Total $ 53,755 $ 60,000
Long-term debt $ 84,000 $ 89,000
Owners equity
Common stock and paid-in surplus $ 60,000 $ 60,000
Accumulated retained earnings 207,346 223,000
Fixed assets
Net plant and equipment $ 339,695 $ 361,100 Total $ 267,346 $ 283,000
Total assets $ 405,101 $ 432,000 Total liabilities and owners equity $ 405,101 $ 432,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales $ 376,068
Cost of goods sold 260,000
Depreciation 49,450
Earnings before interest and taxes $ 66,618
Interest paid 15,800
Taxable income $ 50,818
Taxes (20%) 10,164
Net income $ 40,654
Dividends $ 25,000
Retained earnings 15,654

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.)

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

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

9th Edition

0321598903, 978-0321598905

More Books

Students also viewed these Finance questions

Question

Use implicit differentiation to find dy/dx. x + y +3

Answered: 1 week ago

Question

Does it use a maximum of two typefaces or fonts?

Answered: 1 week ago