# excel - Assignment #1 Problem #1 Part 1: Liquidity/Short...

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Assignment #1 Problem #1 Part 1: Liquidity/Short Term Solvency Ratios Current Ratio =CA/CL: 1.46 Quick Ratio: =(CA-Inv.)/CL: 0.86 Cash Ratio: =Cash/CL: 0.53 Asset Management/Turnover Ratios Inv. Turnover =COGS/Inv.: 8.25 Days' Sale in Inv. =365/IT: 44.26 TA Turnover =Sales/TA: 1.16 Part 2: Du Pont Identity Demonstrates that ROE=PM x TAT x Equit. Mult ROE ROA EM: Profit Margin: TAT: 0.11 1.16 …So Du Pont Identity= 0.27 showing ROE matches. Part 3: Statement of Cash Flows (Smolira Golf Corp. '06-'07) Cash (Beg. Of Year) 18270 Operating Activity Net Income 31722 Depreciation 21950 A/R -1550 Inventory -3292 A/P 2000 Net Cash Flow - Ops. 50830 Investing Activity Sale of Fixed Assets -16409 Depreciation -21950 Net Cash Flow - Inv. -38359 Financing Activity Notes Payable -2000 Common Stock 0 Dividends -18000 Long Term Debt 5000 Other 3624 Net Cash Flow - Financing -11376 Total Net Income 1095 18270 Total Cash 2007 19365 Hmmmm should be 22150 Cash from 2006

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Leverage /Long Term Solvency Ratios Total Debt Ratio =TL/TA:
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## This lab report was uploaded on 04/17/2008 for the course FINOPT 301 taught by Professor Win during the Winter '08 term at UMass (Amherst).

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excel - Assignment #1 Problem #1 Part 1: Liquidity/Short...

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