Using the Balance Sheets and Income Statement below, please calculate the following ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): Short-term solvency ratios Current Ratio Quick Ratio Cash Ratio Asset utilization ratios: Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios: Total debt ratio Debt-equity ratio Equity multiplier Times interest earned ratio Cash coverage ratio Profitability ratios: Profit Margin Return on Assets Return on Equity We will follow up and discuss your calculations during this week's live session. SMOLIRA GOLD CORP. 2014 and 2015 Balance Sheets Assets ($) Liabilities and Owners' Equity ($) 2014 2015 2014 2015 Current Assets Current Liabilities Cash 26,450 29,106 Accounts Payable 30,602 35,485 Accounts Receivable 13,693 18,282 Notes Payable 15,840 13,500 Inventory 27,931 32,586 Other 15,280 20,441 Total 68,074 79,974 Total 61,722 69,426 Long-term debt 95,000 110,000 Fixed Assets Owner's equity Net Plant and Equipment 357,165 398,346 Common stock and paid-in surplus 45,000 45,000 Accumulated retained earnings 223,517 253,893 Total 268,517 298,893 Total Assets 425,239 478,319 Total Liabilities and owners' equity 425,239 478,319 SMOLIRA GOLD CORP. 2015 Income Statement ($) Sales 422,045 Cost of Goods Sold 291,090 Depreciation 37,053 Earnings before interest and taxes 93,902 Interest paid 16,400 Taxable income 77,502 Taxes (35%) 27,126 Net income 50,376 Dividends 20,000 Retained Earnings

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 10P

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Using the Balance Sheets and Income Statement below, please calculate the following ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate):

Short-term solvency ratios
- Current Ratio
- Quick Ratio
- Cash Ratio
Asset utilization ratios:
- Total asset turnover
- Inventory turnover
- Receivables turnover
Long-term solvency ratios:
- Total debt ratio
- Debt-equity ratio
- Equity multiplier
- Times interest earned ratio
- Cash coverage ratio
Profitability ratios:
- Profit Margin
- Return on Assets
- Return on Equity

We will follow up and discuss your calculations during this week's live session.

SMOLIRA GOLD CORP. 2014 and 2015 Balance Sheets
Assets ($)	Liabilities and Owners' Equity ($)
	2014	2015		2014	2015
Current Assets			Current Liabilities
Cash	26,450	29,106	Accounts Payable	30,602	35,485
Accounts Receivable	13,693	18,282	Notes Payable	15,840	13,500
Inventory	27,931	32,586	Other	15,280	20,441
Total	68,074	79,974	Total	61,722	69,426

	Long-term debt	95,000	110,000

Fixed Assets	Owner's equity
Net Plant and Equipment	357,165	398,346	Common stock and paid-in surplus	45,000	45,000
	Accumulated retained earnings	223,517	253,893
Total	268,517	298,893

Total Assets	425,239	478,319	Total Liabilities and owners' equity	425,239	478,319

SMOLIRA GOLD CORP. 2015 Income Statement ($)
Sales		422,045
Cost of Goods Sold	291,090
Depreciation	37,053
Earnings before interest and taxes	93,902
Interest paid	16,400
Taxable income	77,502
Taxes (35%)	27,126
Net income		50,376
Dividends	20,000
Retained Earnings	30,376

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