Problem $3-35$ Calculating Financial Ratios $[$LO $2]$

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

SMOLIRA GOLF, INC.

Balance Sheets as of December $31,2018$ and $2019$

$2018201920182019$

Assets Liabilities and Owners$$ Equity

Current assets Current liabilities

Cash $ $2,971$ $ $2,907$ Accounts payable $ $2,193$ $ $2,680$

Accounts receivable $4,7275,701$ Notes payable $1,7902,196$

Inventory $12,63813,702$ Other $98115$

Total $ $20,336$ $ $22,310$ Total $ $4,081$ $ $4,991$

Long$-$term debt $ $14,100$ $ $16,860$

Owners$$ equity

Common stock

and paid$-$in surplus $ $42,000$ $ $42,000$

Fixed assets Accumulated retained earnings $15,69439,696$

Net plant and equipment $ $55,539$ $ $81,237$ Total $ $57,694$ $ $81,696$

Total assets $ $75,875$ $ $103,547$ Total liabilities and owners$$ equity $ $75,875$ $ $103,547$

SMOLIRA GOLF, INC.

$2019$ Income Statement

Sales $ $188,970$

Cost of goods sold $127,003$

Depreciation $5,253$

EBIT $ $56,714$

Interest paid $1,350$

Taxable income $ $55,364$

Taxes $19,377$

Net income $ $35,987$

Dividends $ $11,985$

Retained earnings $24,002$

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$.,32\mathrm{.}16.$ Enter the profitability ratios as a percent.$)$