Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 10,650
JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets | |||||
Assets | Liabilities and Owners' Equity | ||||
2017 | 2018 | 2017 | 2018 | ||
Current assets | Current liabilities | ||||
Cash | $ 10,650 | $ 10,700 | Accounts payable | $ 73,500 | $ 63,500 |
Accounts receivable | 28,050 | 27,350 | Notes payable | 45,250 | 48,000 |
Inventory | 64,400 | 65,000 | Total | $ 118,750 | $ 111,500 |
Total | $ 103,100 | $ 103,050 | Long-term debt | $ 58,800 | $ 62,100 |
Owners' equity | |||||
Common stock and paid-in surplus | $ 90,000 | $ 90,000 | |||
Fixed assets | Retained earnings | 162,550 | 184,450 | ||
Net plant and equipment | $ 327,000 | $ 345,000 | Total | $ 252,550 | $ 274,450 |
Total assets | $ 430,100 | $ 448,050 | Total liabilities and owners' equity | $ 430,100 | $ 448,050 |
Based on the balance sheet given for Just Dew It, calculate the following financial ratios for the year 2017. |
a. | Current ratio |
b. | Quick ratio |
c. | Cash ratio |
d. | NWC to total assets ratio |
e. | Debt-equity ratio and equity multiplier |
f. | Total debt ratio and long-term debt ratio |
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018. |
a. | Current ratio |
b. | Quick ratio |
c. | Cash ratio |
d. | NWC to total assets ratio |
e. | Debt-equity ratio and equity multiplier |
f. | Total debt ratio and long-term debt ratio |
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