Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Just Dew It Corporation reports the following balance sheet information for

Just Dew It Corporation reports the following balance sheet information for 2020 and 2021.

image text in transcribed

image text in transcribed

Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. 2020 2021 Assets Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities $ 10,200 $13,200 Accounts payable 30,200 38,640 Notes payable 74,600 87,120 $ 46,000 $62,160 27,800 33,120 Total $ 115,000 $ 138,960 Total $ 73,800 $ 95,280 Long-term debt $ 40,000 $ 36,000 Owners' equity Common stock and paid-in surplus $ 60,000 $ 60,000 Retained earnings 226,200 288,720 Net plant and equipment $ 285,000 $ 341,040 Total $ $ 286,200 348,720 Total assets $ $ 400,000 480,000 Total liabilities and owners' equity $ $ 400,000 480,000 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 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.) 2021 times a. Current ratio b. Quick ratio c. Cash ratio d. NWC ratio e. Debt-equity ratio e. Equity multiplier f. Total debt ratio f. Long-term debt ratio 2020 times times times % times times times times times times % times times times times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management And Simulation

Authors: Aparna Gupta

1st Edition

1439835942,1439835950

More Books

Students also viewed these Finance questions

Question

What is commodity money? What is fiat money? Which kind do we use?

Answered: 1 week ago