Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets 2020 2021 Current assets Cash 7 $ 11,250 Accounts receivable Inventory 39,150 $19,440 11,850 16,080 60,240 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable 2020 2021 $30,600 $ 49,200 24,900 31,200 Total $ 62,250 $95,760 Total $55,500 $ 80,400 Long-term debt $27,000 $ 24,000 Owners' equity cest Common stock and paid-in surplus $48,000 $ 48,000 Retained earnings Net plant and equipment $237,750 $384,240 Total 169,500 327,600 $217,500 375,600 $ Total assets 300,000 480,000 Total liabilities and owners' equity 300,000 480,000 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 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 and 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.) 2020 2021 a. Current ratio b. Quick ratio times times times times c. Cash ratio times times d. NWC ratio % % e. Debt-equity ratio times times e. Equity multiplier times times f. Total debt ratio times times f. Long-term debt ratio times times
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