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