Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bethesda Mining Company reports the following balance sheet information for 2 0 2 1 and 2 0 2 2 . BETHESDA MINING COMPANY Balance Sheets

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 20212022 Liabilities and Owners Equity 20212022
Current assets Current liabilities
Cash $ 27,536 $ 31,383 Accounts payable $ 198,119 $ 209,844
Accounts receivable 66,34677,916 Notes payable 91,496104,992
Inventory 156,765185,533 Total $ 289,615 $ 314,836
Total $ 250,647 $ 294,832
Long-term debt $ 345,000 $ 365,000
Owners equity
Common stock and paid-in surplus $ 175,000 $ 183,000
Fixed assets Accumulated retained earnings 294,550382,093
Net plant and equipment $ 853,518 $ 950,097 Total $ 469,550 $ 565,093
Total assets $ 1,104,165 $ 1,244,929 Total liabilities and owners equity $ 1,104,165 $ 1,244,929
Based on the balance sheets given, 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.

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

Finance For Executives Managing For Value Creation

Authors: Gabriel Hawawini, Claude Viallet

2nd Edition

0324117752, 9780324117752

More Books

Students also viewed these Finance questions