Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assets Current assets Cash Accounts receivable Inventory Total $ 242,028 Total Long-term debt Owners' equity Fixed assets Net plant and equipment $ 658,447 $

image text in transcribed

Assets Current assets Cash Accounts receivable Inventory Total $ 242,028 Total Long-term debt Owners' equity Fixed assets Net plant and equipment $ 658,447 $ 589,828 Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 58,042 63,781 120,205 2022 $ 73,306 84,139 185,490 $ 342,935 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable 2021 $ 188,422 83,520 $ 271,942 $ 234,000 2022 $ 196,111 135,088 $ 331,199 $ 170,750 $ 221,000 209,814 $ 430,814 $ 221,000 173,533 $ 394,533 Total assets $ 900,475 $ 932,763 Total liabilities and owners' equity $ 900,475 $ 932,763 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year: a. Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. e. Total debt ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. 2021 Current ratio 2022 Current ratio b. 2021 Quick ratio 2022 Quick ratio times times times times c. 2021 Cash ratio times 2022 Cash ratio times d. 2021 Debt-equity ratio times 2021 Equity multiplier times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

14th edition

133507696, 978-0133507690

More Books

Students also viewed these Finance questions