ome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019                           2018   2019       2018   2019                       Assets           Liabilities and Owners’ Equity           Current assets           Current liabilities              Cash $ 3,211 $ 3,307      Accounts payable $ 2,153 $ 2,600        Accounts receivable   4,767   5,781      Notes payable   1,750   2,116        Inventory   12,478   13,782      Other   90   107                                 Total $ 20,456 $ 22,870         Total $ 3,993 $ 4,823                                     Long-term debt $ 13,400 $ 16,160               Owners’ equity                        Common stock                           and paid-in surplus $ 38,000 $ 38,000     Fixed assets              Accumulated retained earnings   15,654   39,112                               Net plant and equipment $ 50,591 $ 75,225          Total $ 53,654 $ 77,112                           Total assets $ 71,047 $ 98,095   Total liabilities and owners’ equity $ 71,047 $ 98,095                                                 SMOLIRA GOLF, INC. 2019 Income Statement   Sales $ 187,370     Cost of goods sold   126,203     Depreciation   5,333           EBIT $ 55,834     Interest paid   1,430            Taxable income $ 54,404     Taxes   19,041            Net income $ 35,363               Dividends $ 11,905        Retained earnings   23,458       Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)                                                   2019 Profitability Ratios I. Profit Margin                              ?% M. Return on Assets                      ?% N. Return on Equity                        ?%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
icon
Concept explainers
Question
Some recent financial statements for Smolira Golf, Inc., follow.
SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2018 and 2019
                   
      2018   2019       2018   2019
                     
Assets           Liabilities and Owners’ Equity        
  Current assets           Current liabilities        
     Cash $ 3,211 $ 3,307      Accounts payable $ 2,153 $ 2,600  
     Accounts receivable   4,767   5,781      Notes payable   1,750   2,116  
     Inventory   12,478   13,782      Other   90   107  
                     
        Total $ 20,456 $ 22,870         Total $ 3,993 $ 4,823  
                     
            Long-term debt $ 13,400 $ 16,160  
            Owners’ equity        
               Common stock        
                  and paid-in surplus $ 38,000 $ 38,000  
  Fixed assets              Accumulated retained earnings   15,654   39,112  
                     
      Net plant and equipment $ 50,591 $ 75,225          Total $ 53,654 $ 77,112  
                     
  Total assets $ 71,047 $ 98,095   Total liabilities and owners’ equity $ 71,047 $ 98,095  
                     
                     

 

SMOLIRA GOLF, INC.
2019 Income Statement
  Sales $ 187,370  
  Cost of goods sold   126,203  
  Depreciation   5,333  
     
  EBIT $ 55,834  
  Interest paid   1,430  
      
  Taxable income $ 54,404  
  Taxes   19,041  
      
  Net income $ 35,363  
      
     Dividends $ 11,905  
     Retained earnings   23,458  
 

 

Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)

                                                  2019

Profitability Ratios

I. Profit Margin                              ?%

M. Return on Assets                      ?%

N. Return on Equity                        ?%

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education