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. 2020 2021 Assets Current assets Cash Accounts receivable Inventory JUST DEW

image text in transcribed
image text in transcribed
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. 2020 2021 Assets Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2020 2021 Liabilities and Owners' Equity Current liabilities $ 10,620 $13,275 Accounts payable 21,420 29,925 Notes payable 67,860 82,575 $ 52,560 $ 60,750 19,260 24,075 Total $ 99,900 $ 125,775 Total $ 71,820 $ 84,825 Long-term debt $36,000 $ 27,000 Owners' equity Common stock and paid-in surplus $ 45,000 $ 45,000 Retained earnings 207180 293,175 Net plant and equipment $ 260,100 $ 324,225 Total $ 25,180 $ 338,175 Total assets $ 360,000 450,000 Total liabilities and owners' equity $ 360,000 450,000 Based on the balance sheets given for Just Dew it a. Calculate the current ratio for each year. (Do not round intermediate calculations 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.) 2020 times times times 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 % times times times times 2021 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

Liquidated An Ethnography Of Wall Street

Authors: Karen Ho

1st Edition

0822345994,0822391376

More Books

Students also viewed these Finance questions