Question
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
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 | 2021 | 2022 | Liabilities and Owners Equity | 2021 | 2022 |
---|---|---|---|---|---|
Current assets | Current liabilities | ||||
Cash | $ 50,434 | $ 63,944 | Accounts payable | $ 189,922 | $ 197,611 |
Accounts receivable | 62,281 | 82,639 | Notes payable | 85,020 | 136,588 |
Inventory | 123,735 | 189,433 | Total | $ 274,942 | $ 334,199 |
Total | $ 236,450 | $ 336,016 | Long-term debt | $ 237,000 | $ 173,750 |
Owners equity | |||||
Common stock and paid-in surplus | $ 218,000 | $ 218,000 | |||
Fixed assets | Accumulated retained earnings | 164,655 | 199,745 | ||
Net plant and equipment | $ 658,147 | $ 589,678 | Total | $ 382,655 | $ 417,745 |
Total assets | $ 894,597 | $ 925,694 | Total liabilities and owners equity | $ 894,597 | $ 925,694 |
Based on the balance sheets given, calculate the following financial ratios for each year:
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.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
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