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

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 2020 2021
Current assets Current liabilities
Cash $ 11,250 $ 19,440 Accounts payable $ 30,600 $ 49,200
Accounts receivable 11,850 16,080 Notes payable 24,900 31,200
Inventory 39,150 60,240
Total $ 62,250 $ 95,760 Total $ 55,500 $ 80,400
Long-term debt $ 27,000 $ 24,000
Owners equity
Common stock and paid-in surplus $ 48,000 $ 48,000
Retained earnings 169,500 327,600
Net plant and equipment $ 237,750 $ 384,240 Total $ 217,500 $ 375,600
Total assets $ 300,000 $ 480,000 Total liabilities and owners equity $ 300,000 $ 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.)
image text in transcribed \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{2}{|c|}{2020} & \multicolumn{2}{|c|}{2021} \\ \hline a. Current ratio & & times & times \\ \hline b. Quick ratio & times & & times \\ \hline c. Cash ratio & times & & times \\ \hline d. NWC ratio & % & % \\ \hline e. Debt-equity ratio & times & times \\ \hline e. Equity multiplier & times & times \\ \hline f. Total debt ratio & times & times \\ \hline f. Long-term debt ratio & times & times \\ \hline \end{tabular}

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

World Investment Report 2021 Investing In Sustainable Recovery

Authors: United Nations Publications

1st Edition

9211130174,9210054636

More Books

Students also viewed these Finance questions