Some recent financial statements for Smolira Golf Corp. follow. IRA 2017 and 201

Question

Some recent financial statements for Smolira Golf Corp. follow. IRA 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2018 2017 $ 23,066 13,648 2018 24,384 $ 28,300 12,000 19,700 $ 51,155 60,000 $81,000 85,703 2017 Current assets Current liabilities 25,300 Cash Accounts 16,400 28,300 70,000Total Accounts payable Notes payable Other 14,000 12,771 receivable 27152 Total $63,866 Long-term debt Owners' equity Common stock and paid-in s 55,000 55,000 surplus Accumulated retained 213,406 233.297 earnings Fixed assets Net plant and $336,695 $364,000 Total $268,406 $288,297 and owners $400.561 $434,000 Total assets 400,561 $434,000 equity SMOLIRA GOLF CORP 2018 Income Statement $333,706

Explanation / Answer

Answer of Part a:

For 2017:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $63,866 / $51,155
Current Ratio = 1.25

For 2018:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $70,000 / $60,000
Current Ratio = 1.17       

Answer of Part b:

For 2017:

Quick Ratio = (Current Assets – Inventory) / Current Liabilities
Quick Ratio = ($63,866 - $27,152) / $51,155
Quick Ratio = $36,714 / $51,155
Quick Ratio = 0.72

For 2018:

Quick Ratio = (Current Assets – Inventory) / Current Liabilities
Quick Ratio = ($70,000 - $28,300) / $60,000
Quick Ratio = $41,700 / $60,000
Quick Ratio = 0.7

Answer of Part c:

For 2017:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $23,066 / $51,155
Cash Ratio = 0.45

For 2018:

Cash Ratio = Cash / Current Liabilities
Cash Ratio = $25,300 / $60,000
Cash Ratio = 0.42

Answer of Part d:

For 2018:

Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
Average Total Assets = ($400,561 + $434,000) / 2
Average Total Assets = 417,280.5

Total Assets Turnover = Sales / Average Total Assets
Total Assets Turnover = $333,706 / $417,280.5
Total Assets Turnover = 0.8 times

Answer of Part e:

For 2018:

Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Average Inventory = ($27,152 + $28,300) / 2
Average Inventory = $27,726

Inventory Turnover = COGS / Average Inventory
Inventory Turnover = $215,200 / $27,726
Inventory Turnover = 7.76 times

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.