Some recent financial statements for Smolira Golf, Inc., follow. Find the follow

Question

Some recent financial statements for Smolira Golf, Inc., follow.

Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)

SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 3,121 $ 3,157 Accounts payable $ 2,168 $ 2,630 Accounts receivable 4,752 5,751 Notes payable 1,765 2,146 Inventory 12,538 13,752 Other 93 110 Total $ 20,411 $ 22,660 Total $ 4,026 $ 4,886 Long-term debt $ 13,100 $ 15,860 Owners’ equity Common stock and paid-in surplus $ 39,500 $ 39,500 Fixed assets Accumulated retained earnings 15,669 39,331 Net plant and equipment $ 51,884 $ 76,917 Total $ 55,169 $ 78,831 Total assets $ 72,295 $ 99,577 Total liabilities and owners’ equity $ 72,295 $ 99,577

Explanation / Answer

D .Total assets turnover ratio = net sales / average assets

= 187970 /{(72295 + 99577)/2}

=187970/85936

=2.187 times or 2.19

E.inventory turnover = cost of goods sold / average inventory

= 126503/{(12538 +13752)/2}

=126503/13145

=9.623 times or 9.62

F.Receivables turnover = net credit sales/ average Accnts receivables

= 187970 / {(4752+5651)/2}

=35.79

G.total debt ratio = totalDebt / total asets

2015 =17126 / 72295 = .24 times

2016 = (4886 +15860=20746)/99577 =.208 times

H. Debt equity ratio = total debt / equity

2015 = 17126/ 55169 = .31 timea

2016 = 20746 / 78831= .26 times

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