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 $ 31,982 $ 41,399 Accounts payable $ 193,422 $ 201,111
Accounts receivable 58,781 79,139 Notes payable 88,520 140,088
Inventory 131,971 198,632

Total $ 281,942 $ 341,199
Total $ 222,734 $ 319,170

Long-term debt $ 244,000 $ 180,750
Owners equity
Common stock and paid-in surplus $ 211,000 $ 211,000
Accumulated retained earnings 143,239 175,549
Fixed assets

Net plant and equipment $ 657,447 $ 589,328 Total $ 354,239 $ 386,549

Total assets $ 880,181 $ 908,498 Total liabilities and owners equity $ 880,181 $ 908,498

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.)

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

Students also viewed these Finance questions