Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the NWC to total assets ratio for each year. ( Do not round intermediate calculations. Enter your answers as a percent rounded to 2
Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. |
JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets | ||||||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Current assets | Current liabilities | |||||||||||||||
Cash | $ | 11,000 | $ | 14,250 | Accounts payable | $ | 54,000 | $ | 63,750 | |||||||
Accounts receivable | 27,000 | 36,750 | Notes payable | 14,800 | 20,500 | |||||||||||
Inventory | 75,000 | 96,250 | ||||||||||||||
Total | $ | 113,000 | $ | 147,250 | Total | $ | 68,800 | $ | 84,250 | |||||||
Long-term debt | $ | 50,000 | $ | 40,000 | ||||||||||||
Owners equity | ||||||||||||||||
Common stock and paid-in surplus | $ | 55,000 | $ | 55,000 | ||||||||||||
Retained earnings | 226,200 | 320,750 | ||||||||||||||
Net plant and equipment | $ | 287,000 | $ | 352,750 | Total | $ | 281,200 | $ | 375,750 | |||||||
Total assets | $ | 400,000 | $ | 500,000 | Total liabilities and owners equity | $ | 400,000 | $ | 500,000 | |||||||
Based on the balance sheets given for Just Dew It:
|
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