Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 20192018201920182019 Assets

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.BETHESDA MINING COMPANY

Balance Sheets as of December 31, 2018 and 20192018201920182019AssetsLiabilitiesandOwners' EquityCurrent assetsCurrent liabilitiesCash$70,322$88,509Accounts payable$185,922$193,611Accounts receivable66,28186,639Notes payable81,020132,588Inventory114,322178,920

Total$266,942$326,199Total$250,925$354,068

Long-term debt$229,000$165,750Owners' equityCommon stock and paid-in surplus$226,000$226,000Accumulated retained earnings187,930226,197Fixed assets

Net plant and equipment$658,947$590,078Total$413,930$452,197

Total assets$909,872$944,146Total liabilities and owners' equity$909,872$944,146

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.)b.Quick ratio.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)c.Cash ratio.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)d.Debt-equity ratio and equity multiplier.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)e.Total debt ratio.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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

Step: 3

blur-text-image

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

Multinational financial management

Authors: Alan c. Shapiro

10th edition

9781118801161, 1118572386, 1118801164, 978-1118572382

More Books

Students also viewed these Finance questions