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 $ 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 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

Crypto Asset Investing In The Age Of Autonomy

Authors: Jake Ryan

1st Edition

1119705363, 978-1119705369

More Books

Students also viewed these Finance questions

Question

1. Explain the difference between theatre and play.

Answered: 1 week ago