Q.1 Financial statements for Smolira Golf Corp. are given below. SMOLIRA...
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Accounting
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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