Question

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016
	2015				2016					2015				2016
Assets									Liabilities and Owners’ Equity
Current assets									Current liabilities
Cash	$	2,761			$	2,557			Accounts payable	$	2,228			$	2,750
Accounts receivable		4,692				5,631			Notes payable		1,825				2,266
Inventory		12,778				13,632			Other		105				122
Total	$	20,231			$	21,820			Total	$	4,158			$	5,138
									Long-term debt	$	14,800			$	17,560
									Owners’ equity
									Common stock and paid-in surplus	$	45,500			$	45,500
Fixed assets									Accumulated retained earnings		15,729				40,207
Net plant and equipment	$	59,956			$	86,585			Total	$	61,229			$	85,707
Total assets	$	80,187			$	108,405			Total liabilities and owners’ equity	$	80,187			$	108,405

SMOLIRA GOLF, INC. 2016 Income Statement
Sales				$	190,370
Cost of goods sold					127,703
Depreciation					5,183
EBIT				$	57,484
Interest paid					1,280
Taxable income				$	56,204
Taxes					19,671
Net income				$	36,533
Dividends	$	12,055
Retained earnings		24,478

Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)

		2015			2016
Short-term solvency ratios
a.	Current ratio		times			times
b.	Quick ratio		times			times
c.	Cash ratio		times			times
Asset utilization ratios
d.	Total asset turnover					times
e.	Inventory turnover					times
f.	Receivables turnover					times
Long-term solvency ratios
g.	Total debt ratio		times			times
h.	Debt−equity ratio		times			times
i.	Equity multiplier		times			times
j.	Times interest earned ratio					times
k.	Cash coverage ratio					times
Profitability ratios
l.	Profit margin					%
m.	Return on assets					%
n.	Return on equity					%

Answer 1