Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 26,530 $ 34,778 Accounts payable $ 194,422 $ 202,111
Accounts receivable 57,781 78,139 Notes payable 89,520 141,088
Inventory 134,324 201,260 Total $ 283,942 $ 343,199
Total $ 218,635 $ 314,177 Long-term debt $ 246,000 $ 182,750
Owners equity
Common stock and paid-in surplus $ 209,000 $ 209,000
Fixed assets Accumulated retained earnings 136,940 168,456
Net plant and equipment $ 657,247 $ 589,228 Total $ 345,940 $ 377,456
Total assets $ 875,882 $ 903,405 Total liabilities and owners equity $ 875,882 $ 903,405

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

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

Speculation Its Sound Principles And Rules For Its Practice

Authors: Thomas Temple Hoyne

1st Edition

1596059761, 978-1596059764

More Books

Students also viewed these Finance questions

Question

Explain the nature of human resource management.

Answered: 1 week ago

Question

Write a note on Quality circles.

Answered: 1 week ago

Question

Describe how to measure the quality of work life.

Answered: 1 week ago