Question
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 $ 63,014 $ 79,447 Accounts payable $ 187,422 $ 195,111 Accounts receivable 64,781 85,139 Notes payable 82,520 134,088 Inventory 117,852 182,862 Total $ 269,942 $ 329,199 Total $ 245,647 $ 347,448 Long-term debt $ 232,000 $ 168,750 Owners equity Common stock and paid-in surplus $ 223,000 $ 223,000 Accumulated retained earnings 179,352 216,427 Fixed assets Net plant and equipment $ 658,647 $ 589,928 Total $ 402,352 $ 439,427 Total assets $ 904,294 $ 937,376 Total liabilities and owners equity $ 904,294 $ 937,376 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
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