Question
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 | $ | 70,322 | $ | 88,509 | Accounts payable | $ | 185,922 | $ | 193,611 | ||||||||
Accounts receivable | 66,281 | 86,639 | Notes payable | 81,020 | 132,588 | ||||||||||||
Inventory | 114,322 | 178,920 | Total | $ | 266,942 | $ | 326,199 | ||||||||||
Total | $ | 250,925 | $ | 354,068 | Long-term debt | $ | 229,000 | $ | 165,750 | ||||||||
Owners equity | |||||||||||||||||
Common stock and paid-in surplus | $ | 226,000 | $ | 226,000 | |||||||||||||
Fixed assets | Accumulated retained earnings | 187,930 | 226,197 | ||||||||||||||
Net plant and equipment | $ | 658,947 | $ | 590,078 | Total | $ | 413,930 | $ | 452,197 | ||||||||
Total assets | $ | 909,872 | $ | 944,146 | Total liabilities and owners equity | $ | 909,872 | $ | 944,146 | ||||||||
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. Debtequity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Debtequity 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started