SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 2015 2016 201
ID: 2826546 • Letter: S
Question
SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Llabllltles and owners' Equlty Current assets Current liabilities Cash Accounts receivable Inventory 8,149 19,350 $28,666 32.409 4,607 4,1 Accounts payable 6,702 17,357 3,413 $3,846 3,416 165 $6,3197,427 $22,500 19,000 Notes payable Other 2,768 138 Total Long-term debt Owners' equity Total Common stock and paid-in surplus $38,000 38,000 44,792 $58,535 $82,792 $87,354 $109,219 Fixed assets Accumulated retained earnings 20,535 Total Net plant and equipment 5a Total assets 58,688 76,810 $87,354 $109,219 Total liabilities and owners' equityExplanation / Answer
Answer to Part a.
Current Ratio = Current Assets/ Current Liabilities
Current Ratio = 32,409 / 7,427
Current Ratio = 4.36: 1
Answer to Part b.
Quick Ratio = (Current Assets – Inventory) / Current Liabilities
Quick Ratio = (32,409 – 19,350) / 7,427
Quick Ratio = 13,059 / 7,427
Quick Ratio = 1.76: 1
Answer to Part c.
Cash Ratio = Cash and Cash Equivalents/ Current Liabilities
Cash Ratio = 4,910 / 7,427
Cash Ratio = 0.66: 1
Answer to Part d.
Total Assets Turnover = Sales / Average Total Assets
Average Total Assets = (87,354 + 109,219) / 2
Average Total Assets = $98,286.50
Total Assets Turnover = 205,227 / 98,286.50
Total Assets Turnover = 2.09 times
Answer to Part e.
Inventory Turnover = Cost of Goods Sold / Average Inventory
Average Inventory = (17,357 + 19,350) / 2
Average Inventory = $18,353.50
Inventory Turnover = 138,383 / 18,353.50
Inventory Turnover = 7.54 times
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