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 2020 and 2021 Balance Sheets 2021

image text in transcribedimage text in transcribed

Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities Assets 2020 Current assets Cash Accounts receivable $ 13,280 7,520 $14,600 Accounts payable 19,200 Notes payable Inventory 42,400 51,000 Total $ 63,200 $ 84,800 Total Long-term debt Owners' equity 2020 2021 $40,000 $41,800 14,240 21,600 $ 54,240 $ 63,400 $ 32,000 $ 24,000 Common stock and paid-in surplus $40,000 $40,000 Retained earnings 193,760 272,600 Net plant and equipment $315,200 Total 256,800 $233,760 312,600 Total assets 320,000 400,000 Total liabilities and owners' equity $ 320,000 400,000 Based on the balance sheets given for Just Dew It: 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 c. Cash ratio: times times times times 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

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

Public Finance

Authors: John E. Anderson

2nd edition

978-0538478441, 538478446, 978-1133708360, 1133708366, 978-1111526986

More Books

Students also viewed these Finance questions

Question

Application programming interface (API).

Answered: 1 week ago

Question

15. What are the four steps in taking a physical inventory?

Answered: 1 week ago