Question
Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance SheetsAssetsLiabilities and Owners'
Just Dew It Corporation reports the following balance sheet information for 2014 and 2015.
JUST DEW IT CORPORATION
2014 and 2015 Balance SheetsAssetsLiabilities and Owners' Equity2014201520142015Current assetsCurrent liabilitiesCash$14,200$18,260Accounts payable$58,400$61,820Accounts receivable19,00023,100Notes payable23,40025,080Inventory51,80054,780Total$85,000$96,140Total$81,800$86,900Long-term debt$32,000$22,000Owners' equityCommon stock and paid-in surplus$44,000$44,000Retained earnings242,200287,100Net plant and equipment$315,000$343,860Total$286,200$331,100Total assets$400,000$440,000Total liabilities and owners' equity$400,000$440,000
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.)
20142015Current ratiotimestimes
b.Calculate the quick ratio for each year.(Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
20142015Quick ratiotimestimes
c.Calculate the cash ratio for each year.(Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
20142015Cash ratiotimestimes
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.)
20142015NWC ratio%%
e.Calculate the debt-equity ratio and equity multiplier for each year.(Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
20142015Debt-equity ratiotimestimesEquity 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.)
20142015Total debt ratiotimestimesLong-term debt ratiotimestimes
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