Homework Help is Here – Start Your Trial Now!
Business
Finance
Problem 3-35 Calculating Financial Ratios [LO 2] Some recent financial statements for Smolira Golf, Incorporated, follow. Assets Current assets 2021 SMOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Liabilities and Owners' Equity Current liabilities 2022 Cash $ 2,957 Accounts receivable Inventory Total $ 20,351 5,711 13,712 $ 22,380 Fixed assets $ 3,001 4,732 12,618 Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Net plant and equipment $ 54,908 $ 80,473 Total assets $ 75,259 $ 102,853 Total liabilities and owners' equity 2021 $ 2,188 1,785 97 $ 4,070 $ 14,000 $ 41,500 15,689 $ 57,189 $ 75,259 SMOLIRA GOLF, INCORPORATED 2022 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 188,770 126,903 5,263 $ 56,604 1,360 $ 55,244 19,335 $ 35,909 $ 11,975 23,934 h Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent. Answer is complete but not entirely correct. 2021 2022 Short-term solvency ratios a. Current ratio 5.00 times 4.50 times b. Quick ratio 1.90 times 1.74 times c. Cash ratio 0.74 times 5.95 times Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover 1.84 times 9.25 times 33.05 times Long-term solvency ratios g. Total debt ratio 0.24 h. Debt-equity ratio times 0.32 times 2.07 times i. Equity multiplier 1.32 times 0.00x times 0.00 times j. Times interest earned ratio 41.62 times 0.00 times k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity 19.02 % 34.93 % 0.00 %

Problem 3-35 Calculating Financial Ratios [LO 2] Some recent financial statements for Smolira Golf, Incorporated, follow. Assets Current assets 2021 SMOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Liabilities and Owners' Equity Current liabilities 2022 Cash $ 2,957 Accounts receivable Inventory Total $ 20,351 5,711 13,712 $ 22,380 Fixed assets $ 3,001 4,732 12,618 Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Net plant and equipment $ 54,908 $ 80,473 Total assets $ 75,259 $ 102,853 Total liabilities and owners' equity 2021 $ 2,188 1,785 97 $ 4,070 $ 14,000 $ 41,500 15,689 $ 57,189 $ 75,259 SMOLIRA GOLF, INCORPORATED 2022 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 188,770 126,903 5,263 $ 56,604 1,360 $ 55,244 19,335 $ 35,909 $ 11,975 23,934 h Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent. Answer is complete but not entirely correct. 2021 2022 Short-term solvency ratios a. Current ratio 5.00 times 4.50 times b. Quick ratio 1.90 times 1.74 times c. Cash ratio 0.74 times 5.95 times Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover 1.84 times 9.25 times 33.05 times Long-term solvency ratios g. Total debt ratio 0.24 h. Debt-equity ratio times 0.32 times 2.07 times i. Equity multiplier 1.32 times 0.00x times 0.00 times j. Times interest earned ratio 41.62 times 0.00 times k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity 19.02 % 34.93 % 0.00 %

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.1AP
See similar textbooks
icon
Related questions
Question
Problem 3-35 Calculating Financial Ratios [LO 2] Some recent financial statements for Smolira Golf, Incorporated, follow. Assets Current assets 2021 SMOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Liabilities and Owners' Equity Current liabilities 2022 Cash $ 2,957 Accounts receivable Inventory Total $ 20,351 5,711 13,712 $ 22,380 Fixed assets $ 3,001 4,732 12,618 Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Net plant and equipment $ 54,908 $ 80,473 Total assets $ 75,259 $ 102,853 Total liabilities and owners' equity 2021 $ 2,188 1,785 97 $ 4,070 $ 14,000 $ 41,500 15,689 $ 57,189 $ 75,259 SMOLIRA GOLF, INCORPORATED 2022 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 188,770 126,903 5,263 $ 56,604 1,360 $ 55,244 19,335 $ 35,909 $ 11,975 23,934 h Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent. Answer is complete but not entirely correct. 2021 2022 Short-term solvency ratios a. Current ratio 5.00 times 4.50 times b. Quick ratio 1.90 times 1.74 times c. Cash ratio 0.74 times 5.95 times Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover 1.84 times 9.25 times 33.05 times Long-term solvency ratios g. Total debt ratio 0.24 h. Debt-equity ratio times 0.32 times 2.07 times i. Equity multiplier 1.32 times 0.00x times 0.00 times j. Times interest earned ratio 41.62 times 0.00 times k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity 19.02 % 34.93 % 0.00 %
Transcribed Image Text:Problem 3-35 Calculating Financial Ratios [LO 2] Some recent financial statements for Smolira Golf, Incorporated, follow. Assets Current assets 2021 SMOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Liabilities and Owners' Equity Current liabilities 2022 Cash $ 2,957 Accounts receivable Inventory Total $ 20,351 5,711 13,712 $ 22,380 Fixed assets $ 3,001 4,732 12,618 Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Net plant and equipment $ 54,908 $ 80,473 Total assets $ 75,259 $ 102,853 Total liabilities and owners' equity 2021 $ 2,188 1,785 97 $ 4,070 $ 14,000 $ 41,500 15,689 $ 57,189 $ 75,259 SMOLIRA GOLF, INCORPORATED 2022 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 188,770 126,903 5,263 $ 56,604 1,360 $ 55,244 19,335 $ 35,909 $ 11,975 23,934 h Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent. Answer is complete but not entirely correct. 2021 2022 Short-term solvency ratios a. Current ratio 5.00 times 4.50 times b. Quick ratio 1.90 times 1.74 times c. Cash ratio 0.74 times 5.95 times Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover 1.84 times 9.25 times 33.05 times Long-term solvency ratios g. Total debt ratio 0.24 h. Debt-equity ratio times 0.32 times 2.07 times i. Equity multiplier 1.32 times 0.00x times 0.00 times j. Times interest earned ratio 41.62 times 0.00 times k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity 19.02 % 34.93 % 0.00 %
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS