Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I only need parts e and f Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017 2018 JUST
I only need parts e and f
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017 2018 JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities 17,775 Accounts payable $ 46,875 16,425 Notes payable 19,125 56,925 $ 12,000 $ Current assets Cash Accounts receivable Inventory $ 55,575 12,750 24,750 50,250 Total $ 75,000 $ 91,125 Total $ 66,000 $ 80,325 Long-term debt $ 30,000 $ 27,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 45,000 $ 45,000 297,675 234,000 Net plant and equipment $300,000 $ 358,875 Total $279,000 $ 342,675 Total assets $375,000 $450,000 Total liabilities and owners' equity $375,000 $450,000 Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. Calculate the NWC to total assets ratio for each year. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) e. Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) X Answer is not complete. 2017 2018 a. Current ratio 1.14 times 1.13 times b. Quick ratio 0.38 times 0.43 times Cash ratio 0.18 times 0.22 times d. NWC ratio 2.40 % 2.40 % e. times times times times Debt-equity ratio Equity multiplier Total debt ratio Long-term debt ratio f. times times times timesStep 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