Question: Find the following financial ratios for Smolira
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: l. Profit margin ________________ m. Return on assets ________________ n. Return on equity ________________
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SMOLIRA GOLF 2008 and 2009 Balance Sheets Assets Liabilities and Owners' Equity 2008 2009 2008 2009 Current assets Current liabilities Cash $21,860 $ 22,050 Accounts payable $ 19,320 $ 22,850 Accounts recelvable 11,316 13,850 Notes payable 10,000 9,000 Other Inventory Total 23,084 24,650 $56,260 $ 60,550 9,643 11,385 $ 38,963 $ 43,235 $ 75,000 $ 85,000 Total Long-term debt Owners' equity Common stock and paid-in surplus $ 25,000 $ 25,000 Accumulated Fixed assets retained earnings 151,365 167,840 Net plant and equipment 234,068 260,525 Total $176,365 $192,840 Total liabilities and Total assets $290,328 $321,075 owners' equity $290,328 $321,075 SMOLIRA GOLF, Inc. 2009 Income Statement Sales $305,830 Cost of goods sold 210,935 Depreclation Earnings before interest and taxes Interest paid 26,850 $ 68,045 11,930 $ 56,115 Taxable income Taxes (35%) 19,640 $ 36,475 Net income Dividends $20,000 Retained earnings 16,475
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> Firm A and firm B have debt–total asset ratios of 35% and 30% and returns on total assets of 12% and 11%, respectively. Which firm has a greater return on equity?
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> Specialized ratios are sometimes used in specific industries. For example, the so-called book-to-bill ratio is closely watched for semiconductor manufacturers. A ratio of .93 indicates that for every $100 worth of chips shipped over some period, only $93
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