My TU-Towson Univensity X CHAPTER 3 Working With Financie X @ Solved: Market Val

Question

My TU-Towson Univensity X CHAPTER 3 Working With Financie X @ Solved: Market Value Ratios. A | + etonteducat tpx Some recent financial statements for Smolira Golf, Inc, follow SMOURA GOLF, INC. Balance Sheets as ofDecember 31, 2015 and 2016 2015 2016 2015 2016 Assets Liablities and Owners Equaty Current assets Current liablities Cash Accounts recevable 3,181 3,257 Accounts payable 4,762 5,771Notes payable S 2,158 2,610 1,755 2,126 12.498 13,772 Other 91 108 Total $20441 $22 800 Total $4.004 4 844 Long term debt Owners' equty 13,300 $16,060 38.500 $38.500 $64.159 $77 685 Common stock and paid in surplus Accumulated retained earnings Fixed assets Net plant and equipment$ Total assets $51,022 $75,789 $71,463 $98,589 Total liabilities and owners' equity Total $71.463 $98.589 SMOLIRA GOLF 2016 Income Statement Sales $187,570 26,303 Cost of goods sold Depreciation EBIT $ 55,944 1,420 Interest paid Taxable income Taxes 19.083 35,441 Net income Dnidends Retained eamings 11,915 23,526 Find the tollowing financial ratios for Smolira Goir (use year-end figures rather than average values where appropriate) (Do not round inter places, e.9.32.16. Enter the protitability ratios as a percent) Short-term sohency ratios a Current ratio b Quick ratio c. Cash ratio tmes Asset utilization ratios times d Total asset turmnover Inventory tumover f Recevables tunover Firefox automaltically sends some data to Moxilla so that we can improve your experience

Explanation / Answer

Ratios for 2015

(A) current ratio =current assets /current liabilities

=20441÷4004=5.105 times

(B) quick ratio= current assets-inventories /current ratio

20441-12498/4004=1.9837times

(C) cash ratio= cash and cash equivalents + cash/current liabilities

=3181/4004=0.7944times

(G)total debt ratio= total liability /total asset

=17304/71463=0.2421 times

(H) debt equity ratio=total liabilities /shareholders equity

=71463/54159=1.319times

(I) equity multiplier=1+ debt/euity

=2.319times

Ratio for 2016

(A) current ratio=current assets/current liabilities

=22800/4844=4.70times

(B)quick ratio=current asset-inventories/current liabilities

=22800-13772/4844=1.86times

(C) cash ratio = cash +cash and cash equivalents/current liabilities

=3257/4844÷0.67times

(D) total assety turnov er ratio=sales/total assets

=187570/22800=8.22times

(E)inventory turnover ratio=investors/sales×365

=13772/187570×365=26.80 days

(F) receivables turno er ratio=trade receivebles/credit sales×365

=5771÷187570×365=11.23days

(G) total debt ratio= total liabilities-equity /total assets

20904/98589=0.2120 times

(H)debt equity ratio=debt/equity

20904/77685=0.2690 times

(I)equity multiplier=1+debt/equity

=1.2690times

(J)interest earn ratio=EBIT/interest expense

55944/1420=39.39times

(K)cash coverage ratio=(EBIT+non cash expense)/Interest payment

=(55944+5323)/1420=43.14times

(L)profit margin= net income/SALES

=35441/187570=18.89%

(M)return on asset=net income/total assets

=35441/98589=35.94%

(N)return on equity=EBIT/equity+long term debt

=55944/77685+16060=59.67%

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