Question

Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Lidbilities and Owners' Equity Current liabilities $ 2,941 $ 2,857 Accounts payable $ 2,198 $ 2,690 4,722 5,691 Notes payable 1,795 2,206 12,658 13,692 Other 99116 Current assets Cash Inventory Total $20,321 $22,240 Total $ 4,092 $ 5,012 $ 14,200 $16,960 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $42,500 $ 42,500 15,699 39,769 Fixed assets Net plant and equipment $56,170 $ 82,001 Total $ 58,199 $ 82,269 Total assets 44 Total liabilities and owners' $76,491 $104,241 equity uit $ 76,491 $ 104,241

Answer 1

			2018	2019
Short Term Solvency Ratios
a.	Current Ratio	Total Current Assets / Total Current Liabilities	4.97 times	4.44 times
b.	Quick Ratio	(Cash + Accounts Receivable ) / Total Current Liabilities	1.87 times	1.71 times
c.	Cash Ratio	Cash / Total Current Liabilities	3.09 times	2.73 times
Asset Utilization Ratios
d.	Total Asset Turnover	Sales / Average Total Assets		2.09 times
e.	Inventory Turnover	Cost of Goods Sold / Average Inventory		9.65 times
f.	Receivables Turnover	Sales / Average Accounts Receivable		36.33 times
Long Term Solvency Ratios
g.	Total Debt Ratio	Total Liabilities / Total Assets	0.24 times	0.21 times
h.	Debt Equity Ratio	Total Liabilities / Total Owner's Equity	0.31 times	0.27 times
i.	Equity Multiplier	Total Assets / Total Owner's Equity	1.31 times	1.27 times
j.	Times Interest Earned Ratio	EBIT / Interest Paid		42.41 times
k.	Cash Coverage Ratio	( EBIT + Depreciation ) / Interest Paid		46.32 times
Profitability Ratios
l.	Profit Margin	Net Income / Sales		19.06 %
m.	Return on Assets	Net Income / Average Total Assets		39.91 %
n.	Return on Equity	Net Income / Average Owners' Equity		51.35 %