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Give formula as weel as final answer with calculationsSome recent financial statements for Smolira Golf, Incorporated, follow. SHOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Assets 2021 2022 Liabilities and Owners’ Equity 2021 2022 Current assets Current liabilities Cash $3,001 $2,957 Accounts payable $2,188 $2,670 Accounts receivable 4,732 5711 Notes payable 1,785 2,186 Inventory 12,618 13,712 other 7 114 Total $20,351 5 22,380 Total $ 4,070 5 4,970 Long-term debt $14,000 3 16,760 Ouners® equity Common stock and paid-in surplus $ 21,500 3 21,500 Fixed assets Accumulated retained earnings 15,689 39,623 Net plant and equipment 3 54,008 $ 80,473 Total 5 57,189 $81,103 Total assets 5 75,259 $ 102,853 Total liabilities and owners’ equity $ 75,259 $s 102,853 SHOLIRA GOLF, INCORPORATED 2022 Income Statement Sales $ 188,770 Cost of goods sold 126,983 Depreciation 5,263 EBIT $56,604 Interest paid 1,360 Taxable income $55,284 Taxes 19,335 Net income 3 35,909 Dividends $11,975 Retained earnings 23,038 Find the Tollowing financial ratios Tor omolira GOIT (use year-end nigures ratner than average values wnere appropriate). Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios EE NO 7S IN rT I CTT AS— Tr A— (S AS— TT A— ET AS— 7 A— I Ter I I a— et IO NO An— ee I I a— orgtemenyrer || [|| PAP AS— 7 A— (TT AS— 7 A— ET AS TN A— nes mstasmoasto || [ue | I I a— ES I NO I Te I I an— I NO an— Ee I NO an—

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Give formula as weel as final answer with calculationsUploaded ImageUploaded ImageSome recent financial statements for Smolira Golf, Incorporated, follow. SHOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 Assets 2021 2022 Liabilities and Owners’ Equity 2021 2022 Current assets Current liabilities Cash $3,001 $2,957 Accounts payable $2,188 $2,670 Accounts receivable 4,732 5711 Notes payable 1,785 2,186 Inventory 12,618 13,712 other 7 114 Total $20,351 5 22,380 Total $ 4,070 5 4,970 Long-term debt $14,000 3 16,760 Ouners® equity Common stock and paid-in surplus $ 21,500 3 21,500 Fixed assets Accumulated retained earnings 15,689 39,623 Net plant and equipment 3 54,008 $ 80,473 Total 5 57,189 $81,103 Total assets 5 75,259 $ 102,853 Total liabilities and owners’ equity $ 75,259 $s 102,853 SHOLIRA GOLF, INCORPORATED 2022 Income Statement Sales $ 188,770 Cost of goods sold 126,983 Depreciation 5,263 EBIT $56,604 Interest paid 1,360 Taxable income $55,284 Taxes 19,335 Net income 3 35,909 Dividends $11,975 Retained earnings 23,038 Find the Tollowing financial ratios Tor omolira GOIT (use year-end nigures ratner than average values wnere appropriate). Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios EE NO 7S IN rT I CTT AS— Tr A— (S AS— TT A— ET AS— 7 A— I Ter I I a— et IO NO An— ee I I a— orgtemenyrer || [|| PAP AS— 7 A— (TT AS— 7 A— ET AS TN A— nes mstasmoasto || [ue | I I a— ES I NO I Te I I an— I NO an— Ee I NO an—

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Asked by: Test User 100150
Created at: 2025-05-15 09:02:21

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Let's **calculate the required financial ratios for 2022** (you can similarly do for 2021). **I’ll provide formulas, substitutions, and final answers rounded to 2 decimal places.** --- ### **Short-term Solvency Ratios** #### **a. Current ratio** \[ \text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}} \] \[ = \frac{22,380}{4,970} = 4.50 \text{ times} \] #### **b. Quick ratio** \[ \text{Quick Ratio} = \frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}} \] \[ = \frac{22,380 - 13,712}{4,970} = \frac{8,668}{4,970} = 1.74 \text{ times} \] #### **c. Cash ratio** \[ \text{Cash Ratio} = \frac{\text{Cash}}{\text{Current Liabilities}} \] \[ = \frac{2,957}{4,970} = 0.60 \text{ times} \] --- ### **Asset Utilization Ratios** #### **d. Total asset turnover** \[ \text{Total Asset Turnover} = \frac{\text{Sales}}{\text{Total Assets}} \] \[ = \frac{188,770}{102,853} = 1.83 \text{ times} \] #### **e. Inventory turnover** \[ \text{Inventory Turnover} = \frac{\text{Cost of Goods Sold}}{\text{Inventory}} \] \[ = \frac{126,903}{13,712} = 9.25 \text{ times} \] #### **f. Receivables turnover** \[ \text{Receivables Turnover} = \frac{\text{Sales}}{\text{Accounts Receivable}} \] \[ = \frac{188,770}{5,711} = 33.05 \text{ times} \] --- ### **Long-term Solvency Ratios** #### **g. Total debt ratio** \[ \text{Total Debt Ratio} = \frac{\text{Total Assets} - \text{Total Equity}}{\text{Total Assets}} \] \[ = \frac{102,853 - 81,123}{102,853} = \frac{21,730}{102,853} = 0.21 \text{ times} \] #### **h. Debt-equity ratio** \[ \text{Debt-Equity Ratio} = \frac{\text{Total Debt}}{\text{Total Equity}} \] Total Debt = Current Liabilities + Long-term Debt = 4,970 + 16,760 = 21,730 Total Equity = 81,123 \[ = \frac{21,730}{81,123} = 0.27 \text{ times} \] #### **i. Equity multiplier** \[ \text{Equity Multiplier} = \frac{\text{Total Assets}}{\text{Total Equity}} \] \[ = \frac{102,853}{81,123} = 1.27 \text{ times} \] #### **j. Times interest earned ratio** \[ \text{Times Interest Earned} = \frac{\text{EBIT}}{\text{Interest Paid}} \] \[ = \frac{56,064}{1,360} = 41.22 \text{ times} \] #### **k. Cash coverage ratio** \[ \text{Cash Coverage Ratio} = \frac{\text{EBIT} + \text{Depreciation}}{\text{Interest Paid}} \] \[ = \frac{56,064 + 5,263}{1,360} = \frac{61,327}{1,360} = 45.10 \text{ times} \] --- ### **Profitability Ratios** #### **l. Profit margin** \[ \text{Profit Margin} = \frac{\text{Net Income}}{\text{Sales}} \times 100 \] \[ = \frac{35,909}{188,770} \times 100 = 19.03\% \] #### **m. Return on assets (ROA)** \[ \text{ROA} = \frac{\text{Net Income}}{\text{Total Assets}} \times 100 \] \[ = \frac{35,909}{102,853} \times 100 = 34.91\% \] #### **n. Return on equity (ROE)** \[ \text{ROE} = \frac{\text{Net Income}}{\text{Total Equity}} \times 100 \] \[ = \frac{35,909}{81,123} \times 100 = 44.28\% \] --- ## **Summary Table (2022):** | Ratio | Formula/Substitution | 2022 Final Answer | |------------------------------|-----------------------------|---------------------| | Current Ratio | 22,380 / 4,970 | 4.50 times | | Quick Ratio | (22,380-13,712)/4,970 | 1.74 times | | Cash Ratio | 2,957 / 4,970 | 0.60 times | | Total Asset Turnover | 188,770 / 102,853 | 1.83 times | | Inventory Turnover | 126,903 / 13,712 | 9.25 times | | Receivables Turnover | 188,770 / 5,711 | 33.05 times | | Total Debt Ratio | (102,853-81,123) / 102,853 | 0.21 times | | Debt-Equity Ratio | 21,730 / 81,123 | 0.27 times | | Equity Multiplier | 102,853 / 81,123 | 1.27 times | | Times Interest Earned | 56,064 / 1,360 | 41.22 times | | Cash Coverage Ratio | 61,327 / 1,360 | 45.10 times | | Profit Margin | (35,909 / 188,770) × 100 | 19.03% | | Return on Assets (ROA) | (35,909 / 102,853) × 100 | 34.91% | | Return on Equity (ROE) | (35,909 / 81,123) × 100 | 44.28% | Let me know if you want calculations for **2021** or further explanations!

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