Q.1 Financial statements for Smolira Golf Corp. are given below. SMOLIRA...
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Q.1 Financial statements for Smolira Golf Corp. are given below.
| SMOLIRA GOLF CORP. Balance Sheet for Dec 31, 2012 | |||
| Assets | Liabilities and Owners Equity | ||
| Current assets |
| Current liabilities |
|
| Cash | $24,255 | Accounts payable | $27,420 |
| Accounts receivable | 15,235 | Notes payable | 10,800 |
| Inventory | 27,155 | Other | 15,553 |
| Total | 66,645 | Total | 53,773 |
|
|
| Long-term debt | $95,000 |
|
|
| Owners equity |
|
|
|
| Common stock and paid-in surplus |
$40,000 |
|
Fixed assets |
| Accumulated Retained earnings |
243,606 |
| Net plant and equipment | 365,734 | Total | $283,606 |
|
Total assets |
$432,379 | Total liabilities and owners equity |
$432,379 |
| SMOLIRA GOLF CORP. Income Statement for the period of December 2012. | |
|
| |
| Sales | $366,996 |
| Cost of goods sold | 253,122 |
| Depreciation | 32,220 |
| Earnings before interest and taxes | $81,654 |
| Interest paid | 14,300 |
| Taxable Income | $67,354 |
| Taxes (35%) | 23,574 |
| Net Income | $43,780 |
Required:
Evaluate and interpret Short-term solvency ratios, Asset utilization ratios, Long-term solvency ratios and Profitability ratios from the given financial information. (8 Marks)
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