Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, I
ID: 2811470 • Letter: S
Question
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 s 2,821 2,657 Accounts payable 4,702 5,651 Notes payable 12,738 13,652 Other 2,218 2,730 1,815 2,246 120 9 Inventory 103 Total $20,261 S 21,960 Total 4,136 $ 5,096 Long-term debt Owners' equity $14,600 S 17.360 stock and paid-in surplus Accumulated retained eamings $44,500 $ 44,500 15,719 40,061 $60,219 $84,561 $78,955 $107,017 Net plant and equipment $58,694 $ 85,057 Total Total assets $78,955 $107,017 Total liabilities and owners' equity 2014 Income S Sales Cost of goods sold 189,970 127,503 5,203 EBIT Interest paid S 57,264 1,300 Taxable income Taxes $ 55,964 19,587 Net income 36,377 $ 12,035 24,342Explanation / Answer
Answer a.
2013:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $20,261 / $4,136
Current Ratio = 4.90 times
2014:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $21,960 / $5,096
Current Ratio = 4.31 times
Answer b.
2013:
Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
Quick Ratio = ($2,821 + $4,702) / $4,136
Quick Ratio = 1.82 times
2014:
Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
Quick Ratio = ($2,657 + $5,651) / $5,096
Quick Ratio = 1.63 times
Answer c.
2013:
Cash Ratio = Cash / Current Liabilities
Cash Ratio = $2,821 / $4,136
Cash Ratio = 0.68 times
2014:
Cash Ratio = Cash / Current Liabilities
Cash Ratio = $2,657 / $5,096
Cash Ratio = 0.52 times
Answer d.
Total Asset Turnover = Sales / Total Assets
Total Asset Turnover = $189,970 / $107,017
Total Asset Turnover = 1.78 times
Answer e.
Inventory Turnover = Cost of Goods Sold / Inventory
Inventory Turnover = $127,503 / $13,652
Inventory Turnover = 9.34 times
Answer f.
Receivable Turnover = Sales / Accounts Receivable
Receivable Turnover = $189,970 / $5,651
Receivable Turnover = 33.62 times
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