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II. Consider the following financial statements for Smolira Golf, Inc.: A. Calculate the following financial ratios for Smolira Golf, Inc. for each year and analyze whether the company improved or worsened its situation (performance) and why? : Calculate the current liquidity ratio, the debt ratio over total assets, inventory turnover, collection period of portfolio, supplier payment period, final profit margin on sales, return on equity (ROE), and price-earnings ratio or price-earnings

SMOLIRA GOLF Balance sheets, 2008 and 2009 Assets Liabilities and shareholders' equity 2008 2009 2008 2009 Current assets current liabilities Cash $21,860 $22050 Accounts payable $19,320 522850 accounts receivable 11316 13850 Documents to pay 10000 9000 Inventory 23.084 24 650 Others 9643 11 385 Total $56260 $ 60 550 Total $38963 $43,235 long term debt $75,000 $85,000 Capital of the owners Common Stock and Surplus Paid $25,000 $25,000 Fixed assets Retained eamings 151365 167 840 Not plant and equipment 234 068 260 525 Total $ 176365 $192840 Total liabilities and equity total assets $290,328 $321075 accountant $290,328 $32 1,075 SMOLIRA GOLF, Inc. Income Statement 2009 Sales 5305830 Sales cost 210935 Depreciation 26850 Earnings before interest and taxes $68045 Interest paid 11930 taxable profit $56,115 Taxes (35%) 19640 Net profit $36,475 dividends $20,000 Addition to retained earnings 16 475

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