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Some recent financial statements for Smolira Golf, Inc., follow 2013 2014 2013 L

ID: 2811496 • Letter: S

Question

Some recent financial statements for Smolira Golf, Inc., follow 2013 2014 2013 Liabilities and Owners' Equity 2014 3,413 s 3,846 2,768 3,416 165 $ 4,607 $ 4,910 6,702 8,149 Notes payable 17,357 19,350 Other 138 $28,666 $ 32,409 Total 6,319 S 7,427 $22,500 s 19,000 stock and paid-in surplus $38,000 s 38,000 20,535 44,792 $58,535 $ 82,792 $87,354 $109,219 Total liabilities and owners' equity $87,354 S 109,219 Accumulated retained eanings Net plant and equipment 58,688 $ 76,810 Total Total assets $ 205,227 138,383 5,910 Cost of goods sold Depreciation $ 60,934 1,617 EBIT Interest paid S 59,317 20,760 Taxable income Taxes Net income Dividends S 38,557 $ 14,300 24,257 Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where

Explanation / Answer

Answer a.

2013:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $28,666 / $6,319
Current Ratio = 4.54 times

2014:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $32,409 / $7,427
Current Ratio = 4.36 times

Answer b.

2013:

Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
Quick Ratio = ($4,607 + $6,702) / $6,319
Quick Ratio = 1.79 times

2014:

Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities
Quick Ratio = ($4,910 + $8,149) / $7,427
Quick Ratio = 1.76 times

Answer c.

2013:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $4,607 / $6,319
Cash Ratio = 0.73 times

2014:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $4,910 / $7,427
Cash Ratio = 0.66 times

Answer d.

Total Asset Turnover = Sales / Total Assets
Total Asset Turnover = $205,227 / $109,219
Total Asset Turnover = 1.88 times

Answer e.

Inventory Turnover = Cost of Goods Sold / Inventory
Inventory Turnover = $138,383 / $19,350
Inventory Turnover = 7.51 times

Answer f.

Receivable Turnover = Sales / Accounts Receivable
Receivable Turnover = $205,227 / $8,149
Receivable Turnover = 25.18 times

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