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Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Based on the balance sheets given for Just Dew It: a.
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.
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.) |
JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets | ||||||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Current assets | Current liabilities | |||||||||||||||
Cash | $ | 8,850 | $ | 14,200 | Accounts payable | $ | 37,500 | $ | 46,600 | |||||||
Accounts receivable | 15,750 | 23,000 | Notes payable | 11,850 | 19,400 | |||||||||||
Inventory | 34,650 | 52,200 | ||||||||||||||
Total | $ | 59,250 | $ | 89,400 | Total | $ | 49,350 | $ | 66,000 | |||||||
Long-term debt | $ | 27,000 | $ | 24,000 | ||||||||||||
Owners equity | ||||||||||||||||
Common stock and paid-in surplus | $ | 45,000 | $ | 45,000 | ||||||||||||
Retained earnings | 178,650 | 265,000 | ||||||||||||||
Net plant and equipment | $ | 240,750 | $ | 310,600 | Total | $ | 223,650 | $ | 310,000 | |||||||
Total assets | $ | 300,000 | $ | 400,000 | Total liabilities and owners equity | $ | 300,000 | $ | 400,000 | |||||||
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