Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 2014

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

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2013 and 2014
2013 2014 2013 2014
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 4,607 $ 4,910 Accounts payable $ 3,413 $ 3,846
Accounts receivable 6,702 8,149 Notes payable 2,768 3,416
Inventory 17,357 19,350 Other 138 165
Total $ 28,666 $ 32,409 Total $ 6,319 $ 7,427
Long-term debt $ 22,500 $ 19,000
Owners equity
Common stock
and paid-in surplus $ 38,000 $ 38,000
Fixed assets Accumulated retained earnings 20,535 44,792
Net plant and equipment $ 58,688 $ 76,810 Total $ 58,535 $ 82,792
Total assets $ 87,354 $ 109,219 Total liabilities and owners equity $ 87,354 $ 109,219

SMOLIRA GOLF, INC. 2014 Income Statement
Sales $ 205,227
Cost of goods sold 138,383
Depreciation 5,910
EBIT $ 60,934
Interest paid 1,617
Taxable income $ 59,317
Taxes 20,760
Net income $ 38,557
Dividends $ 14,300
Retained earnings 24,257

Required:

Construct the Du Pont identity for Smolira Golf. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Profit margin %
Total asset turnover times
Equity multiplier times
Return on equity %

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

Contemporary Issues In Development Finance

Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi

1st Edition

1138324329, 978-1138324329

More Books

Students also viewed these Finance questions