1. Compute and Interpret financial ratios that managers use to assess liquidity. 2. Compute and Interpret financial ratios that managers use for asset management purposes. 3. Compute and Interpret financial ratios that managers use for debt management purposes. Selected Financial Ratios - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 10 % Paste BIU Cell Alignment Number Conditional Format as Formatting Table Styles Cells Editing Clipboard Font G Styles A1 1 2 3 A fx Recent financial statements for Zimmer, Inc. are as follows: B Recent financial statements for Zimmer, Inc. are as follows: Zimmer Company Comparative Balance Sheet st 4 5 Assets 6 Current assets: This Year Last Year E 4 Sign In F Zimmer Company Income Statement This Year < v 7 Cash $ 8 Marketable securities 360,000 $ 220,000 310,000 Sales (all on account) $4,980,000 80,000 Cost of goods sold 2,988,000 9 Accounts receivable, net 775,000 700,000 Gross margin 1,992,000 10 Inventory 925,000 11 Other current assets 355,000 195,000 750,000 Selling and administrative expenses Operating expenses 985,500 12 Total current assets 2,635,000 2,035,000 13 Plant and equipment, net 1,975,000 1,800,000 Depreciation and amortization General and administrative expenses 410,500 150,000 14 Other assets 75,000 100,000 Total selling and administrative expenses 1,546,000 15 Total assets 4,685,000 $ 3,935,000 Net operating income 446,000