SME Balance Sheet20212020Assets (in millions)Cash85.96056.460Receivables89.56080.670Inventories55.75041.260Other Current Assets9.9506.760Total Current Assets 241.220 185.150Net Property, Plant, and Equipment78.97068.930Goodwill and Other Intangible Assets103.110104.360Other Non-Current Assets6.9004.200Total Assets 430.200 362.640 Total Liabilities and Shareholders' EquityPayables83.240 57.48Current Debt2.700 2.64Total Current Liabilities 85.940 60.120Long-Term Debt122.000 119.62Other Liabilities21.880 22.58Total Liabilities 229.820 202.320Common Stock200.380 160.32Total Equity 200.38 160.32Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT2021Total Revenue (M) 488.10Cost of Revenue 224.40Depreciation 1.50SG&A 167.80Other Operating Expenses 5.60Operating Income 88.80Net Interest Expenses 2.30Pretax Income 86.50Income Tax 16.50Net Income 70.000 2021 MARKET DATAMarket Price$193.42Shares Outstanding (M)13.7Tax Rate18.80%Based on SME’s financial statements, what is its current ratio? [Calculate to 2 decimal points XX.XX]Based on SME’s financial statements, what is its quick ratio? [Calculate to 2 decimal points XX.XX]Based on SME’s financial statements, what is its average collection period or DSO? [Calculate to the nearest whole number XX]Based on SME’s financial statements, what is its inventory turnover ratio? [Calculate to 2 decimal points XX.XX]

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Answered: Based on SME’s financial statements,…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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SME Balance Sheet	2021	2020
Assets (in millions)
Cash	85.960	56.460
Receivables	89.560	80.670
Inventories	55.750	41.260
Other Current Assets	9.950	6.760
Total Current Assets	241.220	185.150
Net Property, Plant, and Equipment	78.970	68.930
Goodwill and Other Intangible Assets	103.110	104.360
Other Non-Current Assets	6.900	4.200
Total Assets	430.200	362.640

Total Liabilities and Shareholders' Equity
Payables	83.240	57.48
Current Debt	2.700	2.64
Total Current Liabilities	85.940	60.120
Long-Term Debt	122.000	119.62
Other Liabilities	21.880	22.58
Total Liabilities	229.820	202.320
Common Stock	200.380	160.32
Total Equity	200.38	160.32
Total Liabilities and Equity	430.200	362.640

INCOME STATEMENT	2021
Total Revenue (M)	488.10
Cost of Revenue	224.40
Depreciation	1.50
SG&A	167.80
Other Operating Expenses	5.60
Operating Income	88.80
Net Interest Expenses	2.30
Pretax Income	86.50
Income Tax	16.50
Net Income	70.000

2021 MARKET	DATA
Market Price	$193.42
Shares Outstanding (M)	13.7
Tax Rate	18.80%

Based on SME’s financial statements, what is its current ratio? [Calculate to 2 decimal points XX.XX]

Based on SME’s financial statements, what is its quick ratio? [Calculate to 2 decimal points XX.XX]

Based on SME’s financial statements, what is its average collection period or DSO? [Calculate to the nearest whole number XX]

Based on SME’s financial statements, what is its inventory turnover ratio? [Calculate to 2 decimal points XX.XX]

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