ExerciseThe balance sheet and the income statement of the Smolira Golf Corp. (2008-2009) are presentedas followsSmolira Golf Corp. Balance Sheet (2008-2009)2008200920082009Cash21,86022,050A/P19,32022,850A/R11,31613,850N/P10,0009,000Inventory23,08424,650Other CL9,64311,38556,26038,96375,000Total CA60,550Total CL43,235LTD85,000Net Plant andequipmentCommon stocks and paid-in-surplus234,068260,52525,00025,000Retained earningsTotal equities290,328 321,075 Total Liabilities & Equity 290,328151,365167,840176,365192,840Total Assets321,075Smolira Golf Corp. Income statement (2009)RevenuesCost of Goods SoldDepreciationEBITInterest paidTaxable IncomeTaxes (35%)Net Income305,830(210,935)(26,850)68,045(11,930)56,115(19,640)36,475Dividends20,000Retained earnings16,475 Use this information to1- Establish the statement of cash flow for the Smolira Golf Corp.2- Calculate and interpret the short-term solvency ratios.3- Calculate and interpret the long-term solveney ratios.4- Calculate and interpret the profitability ratios.5- Calculate and interpret the total asset turnover ratio.6- Construct the Du Pont Identity for the Smolira Golf Corp. Interpret.

Exercise The balance sheet and the income statement of the Smolira Golf Corp. (2008-2009) are presented as follows Smolira Golf Corp. Balance Sheet (2008-2009) 2008 2009 2008 2009 Cash 21,860 22,050 A/P 19,320 22,850 A/R 11,316 13,850 N/P 10,000 9,000 Inventory 23,084 24,650 Other CL 9,643 11,385 Total CA 56,260 60,550 Total CL 38,963 43,235 LTD 75,000 85,000 Net Plant and equipment Common stocks and paid- in-surplus 234,068 260,525 25,000 25,000 Retained earnings Total equities 290,328 321,075 | Total Liabilities & Equity 290,328 151,365 167,840 176,365 192,840 Total Assets 321,075 Smolira Golf Corp. Income statement (2009) 305,830 (210,935) (26,850) 68,045 (11,930) 56,115 Revenues Cost of Goods Sold Depreciation EBIT Interest paid Taxable Income Тахes (35%) (19,640) 36,475 Net Income Dividends 20,000 Retained earnings 16,475

Exercise The balance sheet and the income statement of the Smolira Golf Corp. (2008-2009) are presented as follows Smolira Golf Corp. Balance Sheet (2008-2009) 2008 2009 2008 2009 Cash 21,860 22,050 A/P 19,320 22,850 A/R 11,316 13,850 N/P 10,000 9,000 Inventory 23,084 24,650 Other CL 9,643 11,385 Total CA 56,260 60,550 Total CL 38,963 43,235 LTD 75,000 85,000 Net Plant and equipment Common stocks and paid- in-surplus 234,068 260,525 25,000 25,000 Retained earnings Total equities 290,328 321,075 | Total Liabilities & Equity 290,328 151,365 167,840 176,365 192,840 Total Assets 321,075 Smolira Golf Corp. Income statement (2009) 305,830 (210,935) (26,850) 68,045 (11,930) 56,115 Revenues Cost of Goods Sold Depreciation EBIT Interest paid Taxable Income Тахes (35%) (19,640) 36,475 Net Income Dividends 20,000 Retained earnings 16,475

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Exercise
The balance sheet and the income statement of the Smolira Golf Corp. (2008-2009) are presented
as follows
Smolira Golf Corp. Balance Sheet (2008-2009)
2008
2009
2008
2009
Cash
21,860
22,050
A/P
19,320
22,850
A/R
11,316
13,850
N/P
10,000
9,000
Inventory
23,084
24,650
Other CL
9,643
11,385
56,260
38,963
75,000
Total CA
60,550
Total CL
43,235
LTD
85,000
Net Plant and
equipment
Common stocks and paid-
in-surplus
234,068
260,525
25,000
25,000
Retained earnings
Total equities
290,328 321,075 Total Liabilities & Equity 290,328
151,365
167,840
176,365
192,840
Total Assets
321,075
Smolira Golf Corp. Income statement (2009)
Revenues
Cost of Goods Sold
Depreciation
EBIT
Interest paid
Taxable Income
Taxes (35%)
Net Income
305,830
(210,935)
(26,850)
68,045
(11,930)
56,115
(19,640)
36,475
Dividends
20,000
Retained earnings
16,475

Use this information to
1- Establish the statement of cash flow for the Smolira Golf Corp.
2- Calculate and interpret the short-term solvency ratios.
3- Calculate and interpret the long-term solveney ratios.
4- Calculate and interpret the profitability ratios.
5- Calculate and interpret the total asset turnover ratio.
6- Construct the Du Pont Identity for the Smolira Golf Corp. Interpret.

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