Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  1. Current ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  2. Quick ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  3. Cash ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  4. Debt-equity ratio and equity multiplier.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  5. 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

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

Students also viewed these Finance questions