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 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 | $ | 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 CORP. 2015 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): (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: | 2014 | 2015 | |
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: | 2014 | 2015 | |
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 | % | |
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