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Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2018 Current assets Cash Accounts receivable Inventory Total $ 43,805
Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2018 Current assets Cash Accounts receivable Inventory Total $ 43,805 16,843 BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position Liabilities and Owners' Equity 2017 2018 2017 Current liabilities $ 9,279 $ 11,173 Accounts payable $ 41,060 23,683 25,760 Notes payable 16,157 42,636 46,915 $ 75,598 $ 83, 848 Total $ 57,217 Long-term debt $ 40,000 Owners' equity $272,047 $297,967 Common stock and paid-in surplus $ 50,000 Retained earnings 200, 428 Total $250,428 $347,645 $381,815 Total liabilities and owners' equity $347,645 $ 60,648 $ 35,000 Fixed assets Net plant and equipment $ 50,000 236,167 $286,167 $381,815 Total assets Based on the statement of financial position given for Birtle: a. Calculate the current ratio for each year. (Round the final answers to 2 decimal places.) 2017 1.32 2018 1.38 Current ratio times times b. Calculate the quick ratio for each year. (Round the final answers to 3 decimal places.) 2017 0.576 2018 0.609 times Quick ratio times Quick ratio 0.576 times 0.609 times c. Calculate the cash ratio for each year. (Round the final answers to 3 decimal places.) 2017 0.162 times 2018 0.184 Cash ratio times d. Calculate the NWC to total assets ratio for each year. (Round the final answers to 1 decimal place.) 2017 2018 NWC ratio 2.0 X 0.1 e. Calculate the debt-equity ratio and equity multiplier for each year. (Round the final answers to 2 decimal places.) 2018 2017 x 0.28 times times Debt-equity ratio Equity multiplier 0.25 0.09 0.12 f. Calculate the total debt ratio and long-term debt ratio for each year. (Round the final answers to 3 decimal places.) 2017 2018 Total debt ratio 0.280 times 0.251 times Long-term debt ratio 0.115 times 0.092 X times
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