Question
Bethesda Mining Company reports the following balance sheet information for 2015 and 2016. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016
Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 | |||||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||||
Assets | Liabilities and Owners Equity | ||||||||||||||||
Current assets | Current liabilities | ||||||||||||||||
Cash | $ | 50,434 | $ | 63,944 | Accounts payable | $ | 189,922 | $ | 197,611 | ||||||||
Accounts receivable | 62,281 | 82,639 | Notes payable | 85,020 | 136,588 | ||||||||||||
Inventory | 123,735 | 189,433 | Total | $ | 274,942 | $ | 334,199 | ||||||||||
Total | $ | 236,450 | $ | 336,016 | Long-term debt | $ | 237,000 | $ | 173,750 | ||||||||
Owners equity | |||||||||||||||||
Common stock and paid-in surplus | $ | 218,000 | $ | 218,000 | |||||||||||||
Fixed assets | Accumulated retained earnings | 164,655 | 199,745 | ||||||||||||||
Net plant and equipment | $ | 658,147 | $ | 589,678 | Total | $ | 382,655 | $ | 417,745 | ||||||||
Total assets | $ | 894,597 | $ | 925,694 | Total liabilities and owners equity | $ | 894,597 | $ | 925,694 | ||||||||
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 and round your answers to 2 decimal places, e.g., 32.16.)
Current ratio | ||
2015 | times | |
2016 | times | |
b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Quick ratio | ||
2015 | times | |
2016 | times | |
c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Cash ratio | ||
2015 | times | |
2016 | times | |
d. Debt?equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Debt?equity ratio | Equity multiplier | ||||||
2015 | times | times | |||||
2016 | times | times | |||||
e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Total debt ratio | |||
2015 | times | ||
2016 | times | ||
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