Some recent financial statements for Smolira Golf Corporation follow.AssetsCurrent assetsCashAccounts receivableInventoryTotalTotal assetsFixed assetsNet plant and equipment $336,695SalesCost of goods soldDepreciationTaxable incomeTaxes (22%)Net incomeSMOLIRA GOLF CORPORATION2021 Income StatementEarnings before interest andtaxesInterest paidDividendsRetained earningsa. Current ratiob. Quick ratioc. Cash ratioShort-term solvency ratios:Asset utilization ratios:d. Total asset turnovere. Inventory tumover1. Receivables turnover2020$23,066 $25,30013,64816,40027,15228,300$63,866 $70,000g. Total debt ratioh. Debt-equity ratioI. Equity multiplierLong-term solvency ratios:Times Interest emnedK Cash coverage ratioProfitability ratios:SMOLIRA GOLF CORPORATION2020 and 2021 Balance Sheets2021$ 400,561 $ 434,0001. Profit marginm. Return on asselsn. Return on equity$364,000$ 22,00019,891Find the following financial ratios for Smolira Golf Corporation (use year-end figuresrather than average values where appropriate): (Enter the profitability ratio answers asa percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2decimal places, e.g., 32.16.)2020Limestimestimestimes%%%Times2020Liabilities and Owners' EquityCurrent liabilitiesAccounts payableNotes payableOthertimestimestimesTotalLong-term debtOwners' equityCommon stock and paid-in surplusAccumulated retained earningsTotalTotal liabilities and owners' equity$333,706215,20049,300$ 69,20615,500$ 53,70611,815$ 41,891timesUmestimes20212021DimestimesLimestimestimestimes2021$ 24,384 $28,30014,000 12,00012,771 19,700$ 51,155 $ 60,000$ 81,000 $85,7032020$55,000 $ 55,000213,406 233,297$$268,406 288,297$ 400,561434,000

Ratio analysis aids companies in identifying their strengths and weaknesses, pinpointing areas that…

Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $336,695 Sales Cost of goods sold Depreciation Taxable income Taxes (22%) Net income Dividends Retained earnings SMOLIRA GOLF CORPORATION 2021 Income Statement Earnings before interest and taxes Interest paid a. Current ratio b. Quick ratio c. Cash ratio Asset utilization ratios: d. Total asset turnover Short-term solvency ratios: e. Inventory tumover 1. Receivables turnover $23,066 13,648 2020 g. Total debt ratio h. Debt-equity ratio Equity multiplier $25,300 16,400 27,152 28,300 $63,866 $70,000 Times interest earned k Cash coverage ratio Long-term solvency ratios: Profitability ratios: 1. Profit margin m. Return on assets n. Return on equity SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 $400,561 $434,000 364,000 $ 22,000 19,891 Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.) 2020 times times times % times times Liabilities and Owners' Equity Current liabilities 2020 Accounts payable Notes payable Other times times times Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total $ 69,206 15,500 Total liabilities and owners' equity $ 333,706 215,200 49,300 $ 53,706 11,815 $ 41,891 times times times 2021 2021 times times times times times times 2021 $ 24,384 $28,300 14,000 12,000 12,771 19,700 2020 $51,155 $60,000 $81,000 $85,703 $ 55,000 $ 55,000 213,406 233,297 $ $ 268,406 288,297 $400,561 $ 434,000

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT