Account Question

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qnzna91950

Business Finance

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Please see attached questions and advise the answers to same.

This is only 2 accounting questions regarding financial ratios

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Wrough 30. SMOLIRA GOLF CORP. 2011 and 2012 Balance Sheets Assets 2011 Liabilities and Owners' Equity 2012 2011 2012 Current assets Cash $24,046 $ 24,255 Current liabilities Accounts payable $ 23,184 $ 27,420 Accounts receivable Inventory Total 12,000 12,448 25,392 $61,886 15,235 27,155 $ 66,645 11,571 10,800 15,553 $ 53,773 $ 46,755 $ 80,000 $ 95,000 Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 40,000 $ 40,000 Fixed assets 219,826 243,606 Net plant and equipment 324,695 365,734 $259,826 $283,606 Total Total liabilities and owners' equity Total assets $386,581 $432,379 $386,581 $432,379 SMOLIRA GOLF CORP. 2012 Income Statement Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (35%) Net income Dividends Retained earnings $366,996 253,122 32,220 $ 81,654 14,300 $ 67,354 23,574 $ 43,780 $20,000 23,780 26. Calculating Financial Ratios [LO2] Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): 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 Financial Statements and Long-Term Financial Planning PART 2 Long-term solvency ratios: g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned ratio k. Cash coverage ratio Profitability ratios: 1. Profit margin m. Return on assets n. Return on equity 27. DuPont Identi ile using ROA X b for 24 . both beginning of period and end of period total assets. What do you observe? Calculating EFN [LO2] The most recent financial statements for Fleury, Inc., follow. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? FLEURY, INC. 2011 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends Addition to retained earnings $743,000 578,000 15,200 $149,800 11,200 $138,600 48,510 $ 90,090 $27,027 63,063 FLEURY, INC. Balance Sheet as of December 31, 2011 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20,240 Accounts payable $ 54,400 Accounts receivable 32,560 Notes payable 13,600 Inventory 69,520 Total $ 68,000 Total $122,320 Long-term debt $126,000 Owners' equity Net plant and equipment $330,400 Common stock and paid-in surplus $112,000 Retained earnings 146,720 Total $258,720 $452,720 Total liabilities and owners' equity $452,720 Fixed assets Total assets
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