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 | $ 67,906 | $ 85,508 | Accounts payable | $ 186,422 | $ 194,111 |
Accounts receivable | 65,781 | 86,139 | Notes payable | 81,520 | 133,088 |
Inventory | 115,499 | 180,234 | Total | $ 267,942 | $ 327,199 |
Total | $ 249,186 | $ 351,881 | Long-term debt | $ 230,000 | $ 166,750 |
Owners equity | |||||
Common stock and paid-in surplus | $ 225,000 | $ 225,000 | |||
Fixed assets | Accumulated retained earnings | 185,091 | 222,960 | ||
Net plant and equipment | $ 658,847 | $ 590,028 | Total | $ 410,091 | $ 447,960 |
Total assets | $ 908,033 | $ 941,909 | Total liabilities and owners equity | $ 908,033 | $ 941,909 |
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.
a. 2021:
b. 2022:
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
2. Quick ratio.
a. 2021:
b. 2022:
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
3. Cash ratio.
a. 2021:
b. 2022:
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.
a. 2021:
b. 2022:
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
5. Total debt ratio.
a. 2021:
b. 2022:
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