Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets 2017
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. |
JUST DEW IT CORPORATION | |||||
2017 and 2018 Balance Sheets | |||||
Assets | 2017 | 2018 | Liabilities and Owners' Equity | 2017 | 2018 |
---|---|---|---|---|---|
Current assets | Current liabilities | ||||
Cash | $ 10,450 | $ 10,000 | Accounts payable | $ 70,750 | $ 63,000 |
Accounts receivable | 27,800 | 28,750 | Notes payable | 49,500 | 48,000 |
Inventory | 63,200 | 63,100 | Total | $ 120,250 | $ 111,000 |
Total | $ 101,450 | $ 101,850 | Long-term debt | $ 64,900 | $ 62,700 |
Owners' equity | |||||
Common stock and paid-in surplus | $ 90,000 | $ 90,000 | |||
Fixed assets | Retained earnings | 144,300 | 182,150 | ||
Net plant and equipment | $ 318,000 | $ 344,000 | Total | $ 234,300 | $ 272,150 |
Total assets | $ 419,450 | $ 445,850 | Total liabilities and owners' equity | $ 419,450 | $ 445,850 |
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2017. |
a. | Current ratio |
|
b. | Quick ratio |
|
c. | Cash ratio |
|
d. | NWC to total assets ratio |
|
e. | Debt-equity ratio and equity multiplier |
|
f. | Total debt ratio and long-term debt ratio |
|
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018. |
a. | Current ratio |
|
b. | Quick ratio |
|
c. | Cash ratio |
|
d. | NWC to total assets ratio |
|
e. | Debt-equity ratio and equity multiplier |
|
f. | Total debt ratio and long-term debt ratio |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started