BETHESDA MINING COMPANY Balance Sheets as of December 31, 2013 and 2014 |
| | 2013 | | | 2014 | | | | 2013 | | | 2014 | |
Assets | | | | | | | Liabilities and Owners Equity | | | | | | |
Current assets | | | | | | | Current liabilities | | | | | | |
Cash | $ | 31,982 | | $ | 41,399 | | Accounts payable | $ | 193,422 | | $ | 201,111 | |
Accounts receivable | | 58,781 | | | 79,139 | | Notes payable | | 88,520 | | | 140,088 | |
Inventory | | 131,971 | | | 198,632 | | | | | | | | |
| | | | | | | Total | $ | 281,942 | | $ | 341,199 | |
Total | $ | 222,734 | | $ | 319,170 | | | | | | | | |
| | | | | | | Long-term debt | $ | 244,000 | | $ | 180,750 | |
| | | | | | | Owners equity | | | | | | |
| | | | | | | Common stock and paid-in surplus | $ | 211,000 | | $ | 211,000 | |
| | | | | | | Accumulated retained earnings | | 143,239 | | | 175,549 | |
Fixed assets | | | | | | | | | | | | | |
Net plant and equipment | $ | 657,447 | | $ | 589,328 | | Total | $ | 354,239 | | $ | 386,549 | |
| | | | | | | | | | | | | |
Total assets | $ | 880,181 | | $ | 908,498 | | Total liabilities and owners equity | $ | 880,181 | | $ | 908,498 | |
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Required: | Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year: | | (a) | Current ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) | | Current ratio | 2013 | times | 2014 | times | | (b) | Quick ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) | | Quick ratio | 2013 | times | 2014 | times | | (c) | Cash ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) | | Cash ratio | 2013 | times | 2014 | times | | (d) | Debt-equity ratio and equity multiplier. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) | | Debt-equity ratio | Equity multiplier | 2013 | times | times | 2014 | times | times | | (e) | Total debt ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) | | Total debt ratio | 2013 | times | 2014 | times | | |