SMOLIRA GOLF, INC Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015

Question

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 Accounts receivable Inventory s 4,6074,910 Accounts payable 3,413 3,846 3,416 165 $ 6,319 $ 7.42 $22,500 19,000 6,702 8,149 Notes payable 19.350 Other 2,768 17.357 1381 Total $28,666 32.409Total Long-term debt Owners' equity Common stock and paid-in surplus$38,000 38,000 35 44.797 $58,535 $82,792 $87.354 $109.219Total liabilities and owners' equity$87.354 $109.219 Fixed assets Accumulated retained earnings 20,535 Net plant and equipment Total assets 58,68876,810 Total

Explanation / Answer

d. Total asset turnover = Net sales / Average total assets

= $205227 / ($87354 + $109219)/2

= $205227 / $98286.5

= 2.09

e. Inventory turnover = Cost of goods sold / Average inventoy

= $138383 / ($17357 + $19350)/2

= $138383 / $18353.5

= 7.54 times

f. Receivables turnover = sales / average receivables

= $205227 / ($6702 + $8149)/2

= $205227 / $7425.5

= 27.64 times

Total debt = Total debt / total assets

= $19165 / $109219

= 0.17

Debt equity ratio = Total liabilities / Total equity

= $26427 / $82792

= 0.32

Equity multiplier = Total assets / Total equity

= $109219 / $82792

= 1.32

Times interest earned ratio = EBIT / Interest expense

= $60934 / $1617

= 37.68

Cash coverage ratio = Cash and cash equivalents / current liabilities

= $4910 / $7427

= 0.66

Profit margin = Net pofit / net sales

= $38557 / $205227

= 0.19 or 19%

Return on assets = Net income / total assets

= $38557 / $109219

= 0.35 or 35%

Return on equity = Net income / Total equity

= $38557 / $82792

= 0.46 or 46%.

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