**Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of…**

The following solution is suggested to handle the subject “**Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of…**“. Let’s keep an eye on the content below!

## Question “Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of…”

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 Lidbilities and Owners’ Equity Current liabilities $ 2,941 $ 2,857 Accounts payable $ 2,198 $ 2,690 4,722 5,691 Notes payable 1,795 2,206 12,658 13,692 Other 99116 Current assets Cash Inventory Total $20,321 $22,240 Total $ 4,092 $ 5,012 $ 14,200 $16,960 Long-term debt Owners’ equity Common stock and paid-in surplus Accumulated retained earnings $42,500 $ 42,500 15,699 39,769 Fixed assets Net plant and equipment $56,170 $ 82,001 Total $ 58,199 $ 82,269 Total assets 44 Total liabilities and owners’ $76,491 $104,241 equity uit $ 76,491 $ 104,241

SMOLIRA GOLF, INC. 2019 Income Statement Sales $189,170 Cost of goods sold 127,103 Depreciation 5,243 EBIT Interest paid $56,824 1,340 Taxable income Taxes $55,484 19,419 Net income $36,065 Dividends Retained earnings $ 11,995 24,070

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.) 2018 2019 times times times times times tirges times times times Short-term solvency ratios a. Current ratio b. Quick ratio C. Cash ratio Asset utilization ratios d. Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios Total debt ratio h. Debt-equity ratio Equity multiplier Times interest earned ratio k. Cash coverage ratio Profitability ratios I. Profit margin m. Return on assets n. Return on equity 9. times times times times times times times times

## Answer

2018 |
2019 | |||

Short Term Solvency Ratios | ||||

a. | Current Ratio | Total Current Assets/Total Current Liabilities | 4.97 Times | 4.44 Times |

b. | Quick Ratio | (Cash + Accounts Receivable) / Total Current Liabilities | 1.87 times | 1.71 |

c. | Cash Ratio | Cash / Total current liabilities | 3.09 Times | 2.73 times |

Asset Utilization Ratios | ||||

d. | Total Asset Turnover | Sales / Average Total Assets | 2.09 times | |

e. | Inventory Turnover | Average inventory / Cost of goods sold | 9.65 Times | |

f. | Receivables Turnover | Sales / Average Accounts Receivable | 36.33 | |

Long Term Solvency Ratios | ||||

g. | Ratio of Total Debt | Total Liabilities/Total Assets | 0.24 | 0.21 |

h. | Ratio of Debt Equity | Total Liabilities/Total Owner’s Equity | 0.31 | 0.27 |

i. | Equity Multiplier | Total Assets/Total Owner’s Equity | 1.31 Times | 1.27 Times |

j. | Times Interest Earned Ratio | EBIT/Interest Paid | 42.41 Times | |

k. | Ratio Cash Coverage | ( EBIT + Depreciation ) / Interest Paid | 46.32 Times | |

Profitability Ratio | ||||

l. | Profit Margin | Net Income / Sales | 19.06 % | |

m. | Return on Assets | Net Income / Average Total assets | 39.91 % | |

n. | Return on Equity | Average Owners Equity / Net Income | 51.35 % |

## Conclusion

Above is the solution for “**Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of…**“. We hope that you find a good answer and gain the knowledge about this topic of **business**.