Question

1. Find the following financial ratios for Smolira Golf Corp.

Short-term solvency ratios

1. Current ratio
2. Quick ratio
3. Cash ratio

Asset turnover ratios

4. Total asset turnover
5. Inventory turnover
6. Receivables turnover

Long-term solvency ratios

7. Total debt ratio
8. Equity multiplier Times interest earned ratio
10. Cash coverage ratio

Profitability ratios

11. Profit margin
12. Return on assets
13. Return on equity

Smolira Golf Corp

Balance Sheets as of December 31,2001 and 2002

	2001	2002			2001	2002
Assets				Liabilities & Equity
Current assets				Current liabilities
Cash	$650	$710		Accounts payable	$987	$1,215
Acc. receivable	$2,382	$2,106		Notes payable	$640	$718
Inventory	$4,408	$4,982		Other	$90	$230
Total	$7,440	$7,798		Total	$1,717	$2,163
				Long-term debt	$4,318	$4,190
Fixed assets				Owners' Equity
Net Plant & equipment	$13,992	$18,584		Common stock	$10,000	$10,000
				Retained earnings	$5,397	$10,029
				Total	$15,397	$20,029
Total assets	$21,432	$26,382		Total	$21,432	$26,382

Smolira Golf Corp

2002 Income Statement

Sales	$28,000
Cost of goods sold	$11,600
Depreciation	$2,140
Earnings before interest and taxes	$14,260
Interest paid	$980
Taxable income	$13,280
Taxes (35%)	$4,648
Net Income	$8,632
Dividends	$4,000
Addition to retained earnings	$4,632

Answer 1