Problem 3-26 Calculating Financial Ratios [LO2]

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2014 and 2015 Balance Sheets
Assets									Liabilities and Owners Equity
	2014				2015					2014				2015
Current assets									Current liabilities
Cash	$	24,076			$	24,400			Accounts payable	$	23,484			$	27,400
Accounts receivable		12,748				15,500			Notes payable		13,000				11,100
Inventory		25,742				27,400			Other		11,871				17,500
Total	$	62,566			$	67,300			Total	$	48,355			$	56,000
									Long-term debt	$	72,000			$	84,000
									Owners equity
									Common stock and paid-in surplus	$	45,000			$	45,000
									Accumulated retained earnings		224,906				245,000
Fixed assets
Net plant and equipment	$	327,695			$	362,700			Total	$	269,906			$	290,000
Total assets	$	390,261			$	430,000			Total liabilities and owners equity	$	390,261			$	430,000

SMOLIRA GOLF CORP. 2015 Income Statement
Sales					$	378,618
Cost of goods sold						254,000
Depreciation						56,150
Earnings before interest and taxes					$	68,468
Interest paid						14,600
Taxable income					$	53,868
Taxes (20%)						10,774
Net income					$	43,094
Dividends	$	23,000
Retained earnings		20,094

Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Enter your profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)

Short-term solvency ratios:		2014	2015
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:		2014	2015
g.	Total debt ratio	times	times
h.	Debtequity ratio	times	times
i.	Equity multiplier	times	times

j.	Times interest earned	times
k.	Cash coverage ratio	times

Profitability ratios:
I.	Profit margin	%
m.	Return on assets	%
n.	Return on equity	%