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 $ 24,246 $ 26,100 Accounts payable $ 25,184 $ 29,100 Accounts receivable 14,448 17,200 Notes payable 20,000 12,800 Inventory 27,992 29,100 Other 13,571 18,100 Total $ 66,686 $ 72,400 Total $ 58,755 $ 60,000 Long-term debt $ 89,000 $ 101,000 Owners equity Common stock and paid-in surplus $ 50,000 $ 50,000 Accumulated retained earnings 213,626 226,000 Fixed assets Net plant and equipment $ 344,695 $ 364,600 Total $ 263,626 $ 276,000 Total assets $ 411,381 $ 437,000 Total liabilities and owners equity $ 411,381 $ 437,000 SMOLIRA GOLF, INC. 2012 Income Statement Sales $ 360,968 Cost of goods sold 262,500 Depreciation 29,200 Earnings before interest and taxes $ 69,268 Interest paid 16,300 Taxable income $ 52,968 Taxes (20%) 10,594 Net income $ 42,374 Dividends $ 30,000 Retained earnings 12,374 Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Round your answers to 2 decimal places. (e.g., 32.16)) Short-term solvency ratios: 2011 2012 a. Current ratio times times b. Quick ratio times times c. Cash ratio times times Asset utilization ratios: d. Total asset turnover times e. Inventory turnover times f. Receivables turnover times Long-term solvency ratios: 2011 2012 g. Total debt ratio times times h. Debtequity ratio times times i. Equity multiplier times times j. Times interest earned times k. Cash coverage ratio times Profitability ratios: I. Profit margin % m. Return on assets % n. Return on equity %

What are the Short-term solvency ratios for both years?(a,b,c) What are the asset utilization ratios? (d,e,f) What are the long term solvency ratios for both years? (g,h,i) What is times intrest earned? (j) What are the profitablity ratios? (l,m,n)

SMOLIRA GOLF
2011 and 2012 Balance Sheets
Assets									Liabilities and Owners Equity
	2011				2012					2011				2012
Current assets									Current liabilities
Cash	$	24,246			$	26,100			Accounts payable	$	25,184			$	29,100
Accounts receivable		14,448				17,200			Notes payable		20,000				12,800
Inventory		27,992				29,100			Other		13,571				18,100
																	Total	$	66,686			$	72,400			Total	$	58,755			$	60,000
																										Long-term debt	$	89,000			$	101,000
									Owners equity
									Common stock and paid-in surplus	$	50,000			$	50,000
									Accumulated retained earnings		213,626				226,000
Fixed assets
																	Net plant and equipment	$	344,695			$	364,600			Total	$	263,626			$	276,000
																	Total assets	$	411,381			$	437,000			Total liabilities and owners equity	$	411,381			$	437,000
																	SMOLIRA GOLF, INC.
2012 Income Statement
Sales					$	360,968
Cost of goods sold						262,500
Depreciation						29,200
Earnings before interest and taxes					$	69,268
Interest paid						16,300
Taxable income					$	52,968
Taxes (20%)						10,594
Net income					$	42,374
Dividends	$	30,000
Retained earnings		12,374

Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Round your answers to 2 decimal places. (e.g., 32.16))

Short-term solvency ratios:		2011	2012
a.	Current ratio	times	times
b.	Quick ratio	times	times
c.	Cash ratio	times	times

Asset utilization ratios:
d.	Total asset turnover	times
e.	Inventory turnover	times
f.	Receivables turnover	times

Long-term solvency ratios:		2011	2012
g.	Total debt ratio	times	times
h.	Debtequity ratio	times	times
i.	Equity multiplier	times	times

j.	Times interest earned	times
k.	Cash coverage ratio	times

Profitability ratios:
I.	Profit margin	%
m.	Return on assets	%
n.	Return on equity	%