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 2019

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 21,182 $ 24,141 Accounts payable $ 180,108 $ 190,767 Accounts receivable 51,036 59,935 Notes payable 83,179 98,175 Inventory 120,589 142,718 Total $ 263,287 $ 288,942 Total $ 192,807 $ 226,794 Long-term debt $ 305,000 $ 340,000 Owners equity Common stock and paid-in surplus $ 165,000 $ 178,000 Accumulated retained earnings 235,445 283,578 Fixed assets Net plant and equipment $ 775,925 $ 863,726 Total $ 400,445 $ 461,578 Total assets $ 968,732 $ 1,090,520 Total liabilities and owners equity $ 968,732 $ 1,090,520 Based on the balance sheets given, 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.)

a.2018 Current ratiotimes

2019 Current ratiotimes

b.2018 Quick ratiotimes

2019 Quick ratiotimes

c.2018 Cash ratiotimes

2019 Cash ratiotimes

d.2018 Debt-equity ratiotimes

2019 Debt-equity ratiotimes

2018 Equity multipliertimes

2019 Equity multipliertimes

e.2018 Total debt ratiotimes

2019 Total debt ratiotimes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

5th edition

1259914895, 978-1259914898

Students also viewed these Finance questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago