Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. 2018 2019 Assets Current assets Cash Accounts receivable BETHESDA MINING COMPANY Balance
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. 2018 2019 Assets Current assets Cash Accounts receivable BETHESDA MINING COMPANY Balance Sheets as December 31, 2018 and 2019 2018 2019 Liabilities and Owners' Equity Current liabilities $ 47,858 $ 60,783 Accounts payable 61,781 82,139 Notes payable 190,747 124,912 $ 190,422 $ 198,111 85,520 137,088 Inventory Total $275,942 $ 335,199 Total 333,669 $ 234,551 $ $238,000 $ 174,750 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 217,000 $ 217,000 161,656 196,348 Fixed assets Net plant and equipment 589,628 $ 658,047 $ Total $ 378,656 $ 413,348 Total assets 923,297 $892,598 $ Total liabilities and owners' equity $892,598 $923,297 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.) a. 2018 current ratio times 2019 current ratio times b. 2018 Quick ratio times 2019 Quick ratio times c. 2018 Cash ratio times 2019 Cash ratio times times times d. 2018 Debt-equity ratio 2018 Equity multiplier 2019 Debt-equity ratio 2019 Equity multiplier 2018 Total debt ratio times times e times 2019 Total debt ratio 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