Question
Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022
Bethesda Mining Company reports the following balance sheet information for 2021 and 2022:
BETHESDA MINING COMPANY | |||||
---|---|---|---|---|---|
Balance Sheets as of December 31, 2021 and 2022 | |||||
Assets | 2021 | 2022 | Liabilities and Owners Equity | 2021 | 2022 |
Current assets | Current liabilities | ||||
Cash | $ 55,526 | $ 70,205 | Accounts payable | $ 188,922 | $ 196,611 |
Accounts receivable | 63,281 | 83,639 | Notes payable | 84,020 | 135,588 |
Inventory | 121,382 | 186,805 | Total | $ 272,942 | $ 332,199 |
Total | $ 240,189 | $ 340,649 | Long-term debt | $ 235,000 | $ 171,750 |
Owners equity | |||||
Common stock and paid-in surplus | $ 220,000 | $ 220,000 | |||
Fixed assets | Accumulated retained earnings | 170,594 | 206,478 | ||
Net plant and equipment | $ 658,347 | $ 589,778 | Total | $ 390,594 | $ 426,478 |
Total assets | $ 898,536 | $ 930,427 | Total liabilities and owners equity | $ 898,536 | $ 930,427 |
Based on the balance sheets given, calculate the following financial ratios for each year:
Calculate the following financial ratios for each year:
Current ratio.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Quick ratio.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Cash ratio.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Debt-equity ratio and equity multiplier.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Total debt ratio.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
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