Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019
Some recent financial statements for Smolira Golf, Inc., follow. |
SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 | ||||||||||
2018 | 2019 | 2018 | 2019 | |||||||
Assets | Liabilities and Owners Equity | |||||||||
Current assets | Current liabilities | |||||||||
Cash | $ | 5,298 | $ | 5,827 | Accounts payable | $ | 3,754 | $ | 3,986 | |
Accounts receivable | 7,707 | 8,477 | Notes payable | 3,045 | 3,318 | |||||
Inventory | 12,150 | 21,956 | Other | 152 | 179 | |||||
Total | $ | 25,155 | $ | 36,260 | Total | $ | 6,951 | $ | 7,483 | |
Long-term debt | $ | 24,700 | $ | 16,000 | ||||||
Owners equity | ||||||||||
Common stock | ||||||||||
and paid-in surplus | $ | 40,000 | $ | 37,000 | ||||||
Fixed assets | Accumulated retained earnings | 28,805 | 55,189 | |||||||
Net plant and equipment | $ | 75,301 | $ | 79,412 | Total | $ | 68,805 | $ | 92,189 | |
Total assets | $ | 100,456 | $ | 115,672 | Total liabilities and owners equity | $ | 100,456 | $ | 115,672 | |
SMOLIRA GOLF, INC. 2019 Income Statement | ||||
Sales | $ | 229,854 | ||
Cost of goods sold | 184,317 | |||
Depreciation | 8,730 | |||
EBIT | $ | 36,807 | ||
Interest paid | 1,811 | |||
Taxable income | $ | 34,996 | ||
Taxes | 7,349 | |||
Net income | $ | 27,647 | ||
Dividends | $ | 16,000 | ||
Retained earnings | 11,647 | |||
Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin, return on assets, and return on equity as a percent.) |
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