Chapter 3 Working with Financial Statements SMOLIRA GOLF CORP. 2020 and 2021 Balance Sheets Assets Liabilities and Owners' Equity 2020 2021 2020 2021 $ 32,653 $ 39,350 Current liabilities Accounts payable Notes payable $ 34,886 $ 44,285 18,058 16,848 Current assets Cash Accounts receivable Inventory Total 16,911 34,495 $ 84,059 28,877 44,336 $112,563 of ts Other 18,871 25,619 Total $ 71,815 $ 86,752 Long-term debt $110.000 $140,000 Owners' equity Common stock and paid-in surplus $ 55,000 $ 55,000 Accumulated retained earnings 288,343 333,683 Total $343,343 $388,683 it g Fixed assets Net plant and equipment 441,099 502,872 10 0, Total assets $525,158 Total liabilities and owners' equity $615,435 $525,158 $615,435 le n O SMOLIRA GOLF CORP. 2021 Income Statement Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (25%) Net income Dividends $20,000 Retained earnings 45,340 $531.750 377,294 46,686 $107,770 20,650 $ 87,120 21.780 $ 65,340 26. Calculating Financial Ratios [LO2] Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): Short-term solvency ratios: a. Current ratio. b. Quick ratio. c. Cash ratio. Asset utilization ratios: d. Total asset turnover. e. Inventory turnover. f. Receivables turnover. Long-term solvency ratios: g. Total debt ratio. h. Debt-equity ratio. i. Equity multiplier. j. Times interest earned ratio. k. Cash coverage ratio. Profitability ratios: 1. Profit margin. m. Return on assets. n. Return on equity