Question
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 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
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