Some recent financial statements for Smolira Golf, Inc., follow. Find the follow
ID: 2484161 • Letter: S
Question
Some recent financial statements for Smolira Golf, Inc., follow.
Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter the profitability ratios as percents.)
Some recent financial statements for Smolira Golf, Inc., follow.
Required:Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16). Enter the profitability ratios as percents.)
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 $ 3,151 $ 3,207 Accounts payable Cash Accounts receivable Inventory $ 2,163 $ 2,620 2,136 109 5,761Notes payable 4,757 12,518 13,762 Other 1,760 92 Total $20,426 $22,730 Total $4,015 $ 4,865 Long-term debt Owners' equity $13,200 $ 15,960 Common stock and paid-in surplus Accumulated retained earnings $39,000 39,000 Fixed assets 15,664 39,258 $54,664 $ 78,258 $71,879 $ 99,083 Net plant and equipment $51,453 $76,353 Total Total assets $71,879 $99,083 Total liabilities and owners' equityExplanation / Answer
Answer:
Particulars 2013 2014 Short Term Solvency Ratios; a. Current Ratio = Current Assets/ Current Liabilities 5.09 4.67 b. Quick Ratio = (Current Assets - Inventory) / Current Liabilities 1.97 1.84 c. Cash Ratio = Cash & Cash Equivalents / Current Liabilities 0.78 0.66 Asset Utilisation Ratios; d. Total Asset Turnover = Sales / Total Assets 1.90 e.Inventory Turnover = Cost of goods sold / Average inventory 9.18 f.Receivables Turnover = Credit Sales / Average Receivables 35.59 Long Term Solvency Ratios; g. Total Debt Ratio = Total Outside Liabilities / Total Assets 0.24 0.21 h.Debt Equity Ratio = Long Term Debt Funds / Equity Funds 0.24 0.20 i.Equity Multiplier = Total Assets / Stockholder Equity 1.31 1.27 j.Times interest earned ratio = EBIT / Interest Expense 39.75 k.Cash Coverage ratio = (EBIT + Non Cash Expense) / Interest Expense 43.52 Profitability Ratios; l. Profit Margin = Net Income / Sales 18.91% m. Return on Assets = Net Income / Total Assets 35.85% n. Return on Equity = Net Income / Stockholders Equity 45.39%Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.