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Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year: a. Current ratio. b. Quick ratio. c.
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year:
a. Current ratio.
b. Quick ratio.
c. Cash ratio.
d. NWC to total assets ratio.
e. Debt-equity ratio and equity multiplier.
f. Total debt ratio and long-term debt ratio.
JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets Liabilities and Owners' Equity 2020 2021 2020 2021 Current assets Current liabilities Cash $14,588 $17,631 Accounts payable $55,653 $63,073 Accounts receivable 35,258 41,019 Notes payable 21,895 25,324 Inventory 65,567 71,505 Total $77,548 $88,397 Total $115,413 $130,155 Long-term debt $58,000 $62,000 Owners' equity JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets Liabilities and Owners' Equity 2020 2021 2020 2021 Common stock and paid-in surplus $60,000 $60,000 Retained earnings 397,278 418,179 Net plant and equipment $477,413 $498,421 Total $457,278 $478,179 Total assets $592,826 $628,576 Total liabilities and owners' equity $592,826 $628,576Step by Step Solution
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