Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round

Based on the balance sheets given for Just Dew It:

a.

Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. Calculate the cash ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
d. Calculate the NWC to total assets ratio for each year. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
e. Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
image text in transcribed
image text in transcribed
image text in transcribed
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. 2020 2021 Assets Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities $ 12,000 $ 17,775 Accounts payable 12,750 16,425 Notes payable 50,250 56,925 $ 46,875 $ 55,575 19,125 24.750 Total $ 75,000 $91,125 Total $ 66,000 $ 80,325 Long-term debt $ 30,000 $ 27,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 45,000 $ 45,000 234,000 297,675 $ $ Net plant and equipment 300,000 358,875 Total $ $ 279.000 342,675 Total assets $ $ 375,000 450,000 Total liabilities and owners' equity $ 375,000 450,000 Based on the balance sheets given for Just Dew it: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. Calculate the NWC to total assets ratio for each year. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) e. Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 2020 2021 a. Current ratio times times b. Quick ratio times times c. Cash ratio times times d. NWC ratio % % times times times times e. Debt-equity ratio e. Equity multiplier f. Total debt ratio f. Long-term debt ratio times times times 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

Financial Strategies For The Manager

Authors: Charles Priester, Jincheng Wang

1st Edition

3540709630,3540709665

More Books

Students also viewed these Finance questions

Question

The linear versus the extended purchasing process model.

Answered: 1 week ago