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 Assets 2020

image text in transcribed
image 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 Assets 2020 2021 Liabilities and Owners Equity Current assets Current liabilities Cash $ 10,200 $13,200 Accounts payable Accounts receivable 30,200 38.640 Notes payable Inventory 74,600 87120 2020 2021 $ 46,000 $62160 27.800 33,120 Total $ 115,000 $138.960 Total $ 73,800 $ 95,280 $ 40,000 $36.000 Long-term debt Owners equity Common stock and paid-in surplus $ 60,000 $ 60,000 Retained earnings 226,200 288,720 Net plant and equipment $ 341.040 Total 285.000 $ $ 286,200 348,720 Total assets $ 400,000 Total liabilities and owners' equity 480.000 400,000 480,000 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.gl. 32.16.) 2020 times 2021 times times times times % tines a. Current ratio b. Quick ratio c. Cash ratio d. NWC ratio e. Debt-equity ratio e. Equity multiplier 1. Total debt ratio 1. Long-term debt ratio 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

More Books

Students also viewed these Finance questions