Find the following financial ratios for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.) Short-term solvency ratios: a. Current ratio b. Quick ratio c. Cash ratio 2017 times times times 2018 LENSCHA times times times

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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And the following financial ratlos for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round
the final answers to 2 decimal places.)
Short-term solvency ratios:
a. Current ratio
b. Quick ratio
c. Cash ratio
Asset utilization ratios:
d. Total asset turnover
e. Inventory turnover
f. Receivables turnover
Long-term solvency ratios:
g. Total debt ratio
h. Debt-equity ratio
1. Equity multiplier
j. Times interest earned
k. Cash coverage ratio
Profitability ratios:
1. Profit margin
m. Return on assets
n. Return on equity
2017
times
times
times
Lines
31
2017
e
times
times
times
times
times
2018
2018
times
times
times
Transcribed Image Text:3 And the following financial ratlos for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.) Short-term solvency ratios: a. Current ratio b. Quick ratio c. Cash ratio Asset utilization ratios: d. Total asset turnover e. Inventory turnover f. Receivables turnover Long-term solvency ratios: g. Total debt ratio h. Debt-equity ratio 1. Equity multiplier j. Times interest earned k. Cash coverage ratio Profitability ratios: 1. Profit margin m. Return on assets n. Return on equity 2017 times times times Lines 31 2017 e times times times times times 2018 2018 times times times
Some recent financial statements for Earl Grey Golf Corp. follow.
Current assets
Accounts receivable
Inventory
Fixed assets
Net plant and equipment
Total assets
Assets
Cost of goods sold
Depreciation
Earnings before interest and tax
Taxable income
Taxes (35%)
Net income
2017
Additions to retained earnings
25,392
$ 61,886
$ 24,046 $ 24,255
15,235
27,155
$324,695
EARL GREY GOLF CORP.
2017 and 2018 Statement of Financial Position
$386,581
EARL GREY GOLF CORP.
2018 Statement of Comprehensive Income
2018
$365,734
$20,000
23,788
Current liabilities
Accounts payable
Notes payable
Other
Long-term debt
Owner's equity
Common stock and paid-in surplus
$366.996
253,122
32,220
Total
$ 81,654
14,300
Total liabilitles and owners' equity
$ 67.354
23,574
$ 43,780
Liabilities and Owners' Equity
Retained earnings
Total
2017
$ 23,184
12,000
11,571
$46,755
$ 80,000
$ 40,000
219,826
$259,826
$386,581
2018
$ 27,420
10,800
15,553
$ 53,773
$ 95,000
$ 40,000
243,606
$283,606
$432,379
Transcribed Image Text:Some recent financial statements for Earl Grey Golf Corp. follow. Current assets Accounts receivable Inventory Fixed assets Net plant and equipment Total assets Assets Cost of goods sold Depreciation Earnings before interest and tax Taxable income Taxes (35%) Net income 2017 Additions to retained earnings 25,392 $ 61,886 $ 24,046 $ 24,255 15,235 27,155 $324,695 EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position $386,581 EARL GREY GOLF CORP. 2018 Statement of Comprehensive Income 2018 $365,734 $20,000 23,788 Current liabilities Accounts payable Notes payable Other Long-term debt Owner's equity Common stock and paid-in surplus $366.996 253,122 32,220 Total $ 81,654 14,300 Total liabilitles and owners' equity $ 67.354 23,574 $ 43,780 Liabilities and Owners' Equity Retained earnings Total 2017 $ 23,184 12,000 11,571 $46,755 $ 80,000 $ 40,000 219,826 $259,826 $386,581 2018 $ 27,420 10,800 15,553 $ 53,773 $ 95,000 $ 40,000 243,606 $283,606 $432,379
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