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1. Some recent financial statements for Smolira Golf, Inc.,follow.SMOLIRA GOLF, INC.Balance Sheets as of December 31, 2015 and 20162015201620152016AssetsLiabilities and Owners’ EquityCurrent assetsCurrent liabilitiesCash$2,971$2,907Accounts payable$2,193$2,680Accounts receivable4,7275,701Notes payable1,7902,196Inventory12,63813,702Other98115Total$20,336$22,310Total$4,081$4,991Long-term debt$14,100$16,860Owners’ equityCommon stock and paid-in surplus$42,000$42,000Fixed assetsAccumulated retained earnings15,69439,696Net plant and equipment$55,539$81,237Total$57,694$81,696Total assets$75,875$103,547Total liabilities and owners’ equity$75,875$103,547SMOLIRA GOLF, INC.2016 Income StatementSales$188,970Cost of goods sold127,003Depreciation5,253EBIT$56,714Interest paid1,350Taxable income$55,364Taxes19,377Net income$35,987Dividends$11,985Retained earnings24,002Find the following financial ratios for Smolira Golf (useyear-end figures rather than average values where appropriate):(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16. Enter the profitabilityratios as a percent.)20152016Short-term solvency ratiosa.Current ratiotimestimesb.Quick ratiotimestimesc.Cash ratiotimestimesAsset utilization ratiosd.Total asset turnovertimese.Inventory turnovertimesf.Receivables turnovertimesLong-term solvency ratiosg.Total debt ratiotimestimesh.Debt?equity ratiotimestimesi.Equity multipliertimestimesj.Times interest earned ratiotimesk.Cash coverage ratiotimesProfitability ratiosl.Profit margin%m.Return on assets%n.Return on equity%2. Kaleb’s Karate Supply had a profit margin of 12 percent,sales of $23.8 million, and total assets of $8.8 million.What was the total asset turnover? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Total asset turnover ________ timesIf management set a goal of increasing total asset turnover to 2.75times, what would the new sales figure need to be, assuming noincrease in total assets? (Enter your answer in dollars,not millions of dollars, e.g., 1,234,567. Do not round intermediatecalculations and round your answer to the nearest whole dollar,e.g., 32.)Sales __________ $