SMOLIRA GOLF CORP. Balance Sheet as of December 31, 2015 ASSETS LIABILITIES & OWNER'S EQUITY Current Assets: Current Liabilities: Cash Rs.710 Accounts Payable Rs.1,215 Accounts Receivable 2106 Notes Payable 718 Inventory 4982 Other 230 Total Rs.7,798 Total C L Rs.2,163 Fixed Assets: Long-term debt Rs.4,190 Net plant and Equipment Rs.18,584 Owner's Equity: Common Stock and paid-in surplus Rs.10,000 Retained Earnings Rs.10,029 Total Rs.20,029 Total Assets Rs.26,382 Total Rs.26,382 SMOLIRA GOLF CORP. Income Statement as on December 31, 2011 Sales Rs.28,000 Less: Cost of goods sold 11,600 Depreciation 2,140 Earnings before interest and taxes Rs.14,260 Less: Interest paid 980 Taxable Income Rs.13,280 Taxes (35%) 4,648 Net Income Rs.8,632 Dividend Rs.4000 Addition to retained Earnings 4,632 Calculate following ratios: Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.8E

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	SMOLIRA GOLF CORP.
		Balance Sheet as of December 31, 2015

ASSETS			LIABILITIES & OWNER'S EQUITY

Current Assets:			Current Liabilities:
Cash	Rs.710		Accounts Payable	Rs.1,215
Accounts Receivable	2106		Notes Payable	718
Inventory	4982		Other	230
Total	Rs.7,798		Total C L	Rs.2,163

Fixed Assets:			Long-term debt	Rs.4,190
Net plant and Equipment	Rs.18,584		Owner's Equity:
			Common Stock and paid-in surplus	Rs.10,000
			Retained Earnings	Rs.10,029
			Total	Rs.20,029

Total Assets	Rs.26,382		Total	Rs.26,382
	SMOLIRA GOLF CORP.
		Income Statement as on December 31, 2011


Sales		Rs.28,000
Less: Cost of goods sold	11,600
Depreciation		2,140

Earnings before interest and taxes	Rs.14,260
Less: Interest paid		980

Taxable Income		Rs.13,280
Taxes (35%)		4,648
Net Income		Rs.8,632

Dividend	Rs.4000
Addition to retained
Earnings	4,632

Calculate following ratios:





Asset utilization ratios

d. Total asset turnover
e. Inventory turnover
f. Receivables turnover

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