SMOLIRA GOLF CORP.       Balance Sheet as of December 31, 2015               ASSETS     LIABILITIES & OWNER'S EQUITY           Current Assets:     Current Liabilities:   Cash Rs.710   Accounts Payable Rs.1,215 Accounts Receivable 2106   Notes Payable 718 Inventory 4982   Other 230 Total Rs.7,798   Total   C L Rs.2,163           Fixed Assets:     Long-term debt Rs.4,190 Net plant and Equipment Rs.18,584   Owner's Equity:         Common Stock and paid-in surplus Rs.10,000       Retained Earnings Rs.10,029       Total Rs.20,029           Total Assets Rs.26,382   Total Rs.26,382   SMOLIRA GOLF CORP.       Income Statement as on December 31, 2011                         Sales   Rs.28,000     Less: Cost of goods sold 11,600              Depreciation   2,140               Earnings before interest and taxes Rs.14,260     Less:Interest paid   980               Taxable Income   Rs.13,280     Taxes (35%)   4,648     Net Income   Rs.8,632               Dividend Rs.4000         Addition to retained         Earnings 4,632                 Calculate following ratios:   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 ratios       i. Equity multiplier         j. Times interest earned ratio                                   Profitability Ratios:                 k. Profit Margin         l. Return on Assets       m. Return on equity

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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SMOLIRA GOLF CORP.

 
   

Balance Sheet as of December 31, 2015

   
         

ASSETS

   

LIABILITIES & OWNER'S EQUITY

         

Current Assets:

   

Current Liabilities:

 

Cash

Rs.710

 

Accounts Payable

Rs.1,215

Accounts Receivable

2106

 

Notes Payable

718

Inventory

4982

 

Other

230

Total

Rs.7,798

 

Total   C L

Rs.2,163

         

Fixed Assets:

   

Long-term debt

Rs.4,190

Net plant and Equipment

Rs.18,584

 

Owner's Equity:

 
     

Common Stock and paid-in surplus

Rs.10,000

     

Retained Earnings

Rs.10,029

     

Total

Rs.20,029

         

Total Assets

Rs.26,382

 

Total

Rs.26,382

 

SMOLIRA GOLF CORP.

 
   

Income Statement as on December 31, 2011

   
         
         

Sales

 

Rs.28,000

   

Less: Cost of goods sold

11,600

   

         Depreciation

 

2,140

   
         

Earnings before interest and taxes

Rs.14,260

   

Less:Interest paid

 

980

   
         

Taxable Income

 

Rs.13,280

   

Taxes (35%)

 

4,648

   

Net Income

 

Rs.8,632

   
         

Dividend

Rs.4000

     

 

Addition to retained

       

Earnings

4,632

     
         

Calculate following ratios:

 

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 ratios

     

i. Equity multiplier

       

j. Times interest earned ratio

     
       
         
         

Profitability Ratios:

     
         

k. Profit Margin

       

l. Return on Assets

     

m. Return on equity

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