PLEASE SHOW WORK PLEASE SHOW WORK Some recent financial statements for Smolira G
ID: 1170870 • Letter: P
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Some recent financial statements for Smolira Golf Corp. follovw SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2014 2015 2015 Current assets Current liabilities $ 24,086 12,848 26,042 $ 23,584 15,000 11,971 $ 27,500 11,200 18,300 $ 24,500 Cash Accounts receivable Inventory 15,600 27,500 Accounts payable Notes payable Other 62,976 67,600 $ 50,555 $ 57,000 60,000 Long-term debt Owners' equity $ 73,000 Common stock and paid-in surplus Accumulated retained earnings 44,000 237,116 $ 44,000 256,000 Fixed assets Net plant and equipment $328,695 $362,400 Total $281,116 $300,000 Total assets $391,671 $430,000 Total liabilities and owners' equity $391,671 $430,000Explanation / Answer
Answer a.
2015:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $67,600 / $57,000
Current Ratio = 1.19 times
2014:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $62,976 / $50,555
Current Ratio = 1.25 times
Answer b.
2015:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio = ($67,600 - $27,500) / $57,000
Quick Ratio = 0.70 times
2014:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio = ($62,976 - $26,042) / $50,555
Quick Ratio = 0.73 times
Answer c.
2015:
Cash Ratio = Cash / Current Liabilities
Cash Ratio = $24,500 / $57,000
Cash Ratio = 0.43 times
2014:
Cash Ratio = Cash / Current Liabilities
Cash Ratio = $24,086 / $50,555
Cash Ratio = 0.48 times
Answer d.
Total Asset Turnover = Sales / Total Assets
Total Asset Turnover = $373,473 / $430,000
Total Asset Turnover = 0.89 times
Answer e.
Inventory Turnover = Cost of Goods Sold / Inventory
Inventory Turnover = $254,500 / $27,500
Inventory Turnover = 9.25 times
Answer f.
Receivables Turnover = Sales / Accounts Receivable
Receivables Turnover = $373,473 / $15,600
Receivables Turnover = 23.94 times
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