a. `What is net income for 2009?
b.
What is the operating cash flow for 2009?
c.
What is the cash flow from assets for 2009?
Is this possible? Explain.
d.
If no new debt was issued during the year, what is the cash flow to creditors?
What is
the cash flow to stockholders?
Explain and interpret the positive and negative signs
of your answers in (a) through (d).
#4:
The Ashwood Company has long-term debt ratio of 0.45 and a current ratio of 1.25.
Current liabilities are $875, sales are $5,780, profit margin is 9.5 percent, and ROE is
18.5 percent.
What is the amount of the firm’s net fixed assets?
#5:
Some recent financial statements for Smolira Golf Corp. follow:
SMOLIRA GOLF
2008 AND 2009 Balance Sheets
Assets
Liabilities and Owners’ Equity
2008
2009
2008
2009
Current assets
Current liabilities
Cash
$21,860
$22,050
Accounts payable
$19,320
$22,850
Account receivable
11,316
13,850
Notes payable
10,000
9,000
Inventory
23,084
24,650
Other
9,643
11,385
Total
$56,260
$60,550
Total
$38,963
$43,235

Long-term debt
$75,000
$85,000
Owner’s equity
Common stock
and paid-in
surplus
$25,000
$25,000
Fixed assets
Accumulated
retained earnings
151,365
167,840
Net plant and
equipment
$234,068
$260,525
Total
$176,365
$192,840
Total assets
$290,328
$321,075
Total liabilities and
owner’s equity
$290,328
$321,075
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
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:
l.
Profit margin
m. Return on assets
n. Return on equity

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- Winter '14
- Balance Sheet, Current Liabilities, Financial Ratio, Generally Accepted Accounting Principles, net fixed assets