Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf, Inc., are as follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019

Some recent financial statements for Smolira Golf, Inc., are as follow.


SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2018 and 2019

20182019

20182019
Assets
Liabilities and Owners’ Equity
Current assets




Current liabilities



Cash$3,251$3,407
Accounts payable$2,143$2,580
Accounts receivable
4,777
5,801
Notes payable
1,740
2,096
Inventory
12,438
13,802
Other
88
105











Total$20,466$23,010
Total$3,971$4,781

















Long-term debt$13,600$16,360






Owners’ equity









Common stock









and paid-in surplus$37,000$37,000
Fixed assets




Accumulated retained earnings
15,644
38,966











Net plant and equipment$49,749$74,097
Total$52,644$75,966











Total assets$70,215$97,107
Total liabilities and owners’ equity$70,215$97,107













SMOLIRA GOLF, INC.
2019 Income Statement
Sales

$186,970
Cost of goods sold


126,003
Depreciation


5,353





EBIT

$55,614
Interest paid


1,450





Taxable income

$54,164
Taxes


18,957





Net income

$35,207





Dividends$11,885

Retained earnings
23,322



Construct the DuPont identity for Smolira Golf.

Find

profit margin

total asset turnover 

equity multiplier 

return on equity 

Step by Step Solution

3.48 Rating (165 Votes )

There are 3 Steps involved in it

Step: 1

Profit Margin PM Net Income Sales Total Asset Turnover TAT Sales Average Total Assets Equity Multipl... 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

Essentials of Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

10th edition

1260013955, 1260013952, 978-1260013955

More Books

Students also viewed these Accounting questions

Question

=+d) Why does the no trend model from Exercise 40 no longer work?

Answered: 1 week ago