Question
Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities
Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets Current liabilities Cash $ 12,000 $ 17,775 Accounts payable $ 46,875 $ 55,575 Accounts receivable 12,750 16,425 Notes payable 19,125 24,750 Inventory 50,250 56,925 Total $ 75,000 $ 91,125 Total $ 66,000 $ 80,325 Long-term debt $ 30,000 $ 27,000 Owners equity Common stock and paid-in surplus $ 45,000 $ 45,000 Retained earnings 234,000 297,675 Net plant and equipment $ 300,000 $ 358,875 Total $ 279,000 $ 342,675 Total assets $ 375,000 $ 450,000 Total liabilities and owners equity $ 375,000 $ 450,000 Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Current ratio times times b. Calculate the quick ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Quick ratio times times c. Calculate the cash ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Cash ratio times times 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.) 2014 2015 NWC ratio % % e. Calculate the debtequity ratio and equity multiplier for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Debt-equity ratio times times Equity multiplier f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Total debt ratio times times Long-term debt ratio times times
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