Q6.Find the following financial ratios for Smolira Golf Corp.Asset utilization ratios:Inventory turnoveTb. Days in InventoryReceivables turnoverd. Days Sales outstandingFixed Asset turnoverf. Total asset turnovera.с.C.Liquidity ratios:g. Current ratioh. Quick ratioi. Cash ratioj. Cash conversion cycleSolvency ratios:k. Debt to asset ratio1. Debt-equity ratiom. Times interest carnedProfitability ratios:Gross Profit margino. Operating profit marginp. Net profit marginn.1. Construct the Du Pont identity for Smolira Golf Corp.2. Identify any ratios which needs to analyze further. SMOLIRA GOLF, Inc.2009 Income StatementSales$305,830Cost of goods soldDepreciationEamings before interest and taxesInterest paid210,93526,850$ 68,04511,930$ 56,115Taxable incomeTaxes (35%)19,640$ 36,475Net incomeDividends$20,000Retained earnings16,475SMOLIRA GOLF2008 and 2009 Balance SheetsAssetsLiabilities and Owners' Equity2008200920082009Current assetsCurrent liabilitiesCash$21,860 $ 22,050Accounts payable$ 19,320 $ 22,850Accountsreceivable11,31613,850Notes payable10,0009,000InventoryOther24,65023,084$56,260 $ 60,5509,64311,385$ 38,963 $ 43,235$ 75,000 $ 85,000TotalTotalLong-term debtOwners' equityCommon stock andpaid-in surplus$ 25,000 $ 25,000AccumulatedFixed assetsretained eamings151,365 167,840Net plant andequipment234,068 260,525Total$176,365 $192,840Total liabilities andTotal assets$290,328 $321,075owners' equity$290,328 $321,075

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Answered: Q6. Find the following financial ratios…

Q6. Find the following financial ratios for Smolira Golf Corp. Asset utilization ratios: a. Inventory turnover b. Days in Inventory Receivables turnover c.

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

Q6.
Find the following financial ratios for Smolira Golf Corp.
Asset utilization ratios:
Inventory turnoveT
b. Days in Inventory
Receivables turnover
d. Days Sales outstanding
Fixed Asset turnover
f. Total asset turnover
a.
с.
C.
Liquidity ratios:
g. Current ratio
h. Quick ratio
i. Cash ratio
j. Cash conversion cycle
Solvency ratios:
k. Debt to asset ratio
1. Debt-equity ratio
m. Times interest carned
Profitability ratios:
Gross Profit margin
o. Operating profit margin
p. Net profit margin
n.
1. Construct the Du Pont identity for Smolira Golf Corp.
2. Identify any ratios which needs to analyze further.

SMOLIRA GOLF, Inc.
2009 Income Statement
Sales
$305,830
Cost of goods sold
Depreciation
Eamings before interest and taxes
Interest paid
210,935
26,850
$ 68,045
11,930
$ 56,115
Taxable income
Taxes (35%)
19,640
$ 36,475
Net income
Dividends
$20,000
Retained earnings
16,475
SMOLIRA GOLF
2008 and 2009 Balance Sheets
Assets
Liabilities and Owners' Equity
2008
2009
2008
2009
Current assets
Current liabilities
Cash
$21,860 $ 22,050
Accounts payable
$ 19,320 $ 22,850
Accounts
receivable
11,316
13,850
Notes payable
10,000
9,000
Inventory
Other
24,650
23,084
$56,260 $ 60,550
9,643
11,385
$ 38,963 $ 43,235
$ 75,000 $ 85,000
Total
Total
Long-term debt
Owners' equity
Common stock and
paid-in surplus
$ 25,000 $ 25,000
Accumulated
Fixed assets
retained eamings
151,365 167,840
Net plant and
equipment
234,068 260,525
Total
$176,365 $192,840
Total liabilities and
Total assets
$290,328 $321,075
owners' equity
$290,328 $321,075

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