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 $ 4,350 $9,800 Accounts payable Accounts receivable 11,550 14,200 Notes payable Inventory 58,350 75,800 $ 74,250 $ 99,800 Total 2020 2021 $ 48,000 $ 49,800 10,350 18,600 Total $ 58,350 $ 68,400 Long-term debt $ 42,000 $ 34,000 Owners' equity Common stock and paid-in surplus $ 45,000 $ 45,000 Retained earnings 154,650 252,600 Net plant and equipment $ 225,750 Total 300,200 $ 199,650 $ 297,600 Total assets $ 300,000 400,000 Total liabilities and owners' equity $ 300.000 400.000 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.) aces 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 127 times 0.27 times 0.07 times % 0.50 times 2021 1.46 times 0.35 times 0.14 times 1% 0.34 times 1.34 times 0.26 times times 1.50 times 0.33 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

Finanacial Investment Implemetation

Authors: Bill P. Hall

1st Edition

979-8359264228

More Books

Students also viewed these Finance questions

Question

D. What concepts, if any, were confusing to you?

Answered: 1 week ago