2 0.00 points Some recent financal statements for Smoira Goif, Inc., tolow. SMOL

Question

2 0.00 points Some recent financal statements for Smoira Goif, Inc., tolow. SMOLIRA GOLF, INC Balanco Sheets as of December 31, 2015 and 2018 Liabilities and Owners' Equty Curront assots Curront labiltes S 2,881 S 2.757 $ 2.208 2,710 Accounts payable Notos payablo Accounts roceivable 1,805 Long-term debt Owners oquity 4.400 Common slock and paid-in surplus Accumulatod rotained carnings $43,500 43,500 Fxod assots Not plant and equipment Total asses 557432 8329 Total $77,723 S106,629 T iabilites and owners equty $77,723 $105,829 SMOLIRA GOLF INC 2016 Inoome Statement $189,570 Cost of goods sold Interost paid $ 36,221 S12,015 Rotained carnings Find the following înancial ratios for Smolira Goif (use year-end figures rather than average values where approprate(Do not round intormediate calculations and round your answers to 2 docimal places, e.g., 32.16. Enter the profitability ratios as a percent) Short-term solvency ratios a Current ratio b. Quick rato c Cash rato Assot utlizaton ratios d Total assot turnoNGr e Inventory tumover F. Receivables turmover Long-term sovency ratics Total debt ratio h Deb equity raso i. Equity mut plio . Timos intorost caned rato k. Cash coverage rato Proftabilty ratios I. Proft magin m Roturn on assets n Return on equity

Explanation / Answer

Answer a.

2015:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $20,291 / $4,114
Current Ratio = 4.93

2016:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $22,100 / $5,054
Current Ratio = 4.37

Answer b:

2015

Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio = ($20,291 - $12,696) / $4,114
Quick Ratio = 1.85

2016:

Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio = ($22,100 - $13,672) / $5,054
Quick Ratio = 1.67

Answer c.

2015:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $2,881 / $4,114
Cash Ratio = 0.70

2016:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $2,757 / $5,054
Cash Ratio = 0.55

Answer d.

Average Total Assets = (Total Assets 2015 + Total Assets 2016) / 2
Average Total Assets = ($77,723 + $106,629) / 2
Average Total Assets = $92,176

Total Assets Turnover = Sales / Average Total Assets
Total Assets Turnover = $189,570 / $92,176
Total Assets Turnover = 2.06

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