80.2K

Verified Solution

Link Copied!

Some recent financial statements for Earl Grey Golf Corp. follow.

EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position
Assets									Liabilities and Owners Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	24,046			$	24,255			Accounts payable	$	23,184			$	27,420
Accounts receivable		12,448				15,235			Notes payable		12,000				10,800
Inventory		25,392				27,155			Other		11,571				15,553
Total	$	61,886			$	66,645			Total	$	46,755			$	53,773
									Long-term debt	$	80,000			$	95,000
Fixed assets									Owners equity
Net plant and equipment	$	324,695			$	365,734			Common stock and paid-in surplus	$	40,000			$	40,000
									Retained earnings		219,826				243,606
									Total	$	259,826			$	283,606
Total assets	$	386,581			$	432,379			Total liabilities and owners equity	$	386,581			$	432,379

EARL GREY GOLF CORP. 2018 Statement of Comprehensive Income
Sales					$	366,996
Cost of goods sold						253,122
Depreciation						32,220
Earnings before interest and tax					$	81,654
Interest paid						14,300
Taxable income					$	67,354
Taxes (35%)						23,574
Net income					$	43,780
Dividends	$	20,000
Additions to retained earnings		23,780

Find the following financial ratios for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.)

Short-term solvency ratios:		2017	2018
a.	Current ratio	times	times
b.	Quick ratio	times	times
c.	Cash ratio	times	times

Asset utilization ratios:
d.	Total asset turnover	times
e.	Inventory turnover	times
f.	Receivables turnover	times

es 2018 Statement of Comprehensive Income Sales Cost of goods sold Depreciation Earnings before interest and tax Interest paid Taxable income Taxes (35%) Net income Dividends Additions to retained earnings $20,000 23,780 Short-term solvency ratios: a. Current ratio b. Quick ratio c. Cash ratio Find the following financial ratios for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.) $366,996 253,122 32,220 $ 81,654 14,300 $ 67,354 23,574 $ 43,780 2017 times. times times 2018 times times times Check my wo Find the following financial ratios for Earl Grey Golf Corp. (use year-end figures rather than average values where appropriate): (Round the final answers to 2 decimal places.) 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 2017 times times times 2017 times times times times times 2018 2018 times times times times times Long-term solvency ratios: g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned k. Cash coverage ratio Profitability ratios: 1. Profit margin m. Return on assets n. Return on equity 2017 times times % times times 2018 times times

Answer & Explanation Solved by verified expert

See Answer