Question
Just Dew It Corporation reports the following balance sheet information for 2008 and 2009. JUST DEW IT CORPORATION 2008 and 2009 Balance Sheets Assets Liabilities
Just Dew It Corporation reports the following balance sheet information for 2008 and 2009. |
JUST DEW IT CORPORATION 2008 and 2009 Balance Sheets | |||||
Assets | Liabilities and Owners' Equity | ||||
2008 | 2009 | 2008 | 2009 | ||
Current assets | Current liabilities | ||||
Cash | $ 10,050 | $ 10,300 | Accounts payable | $ 74,750 | $ 58,500 |
Accounts receivable | 27,300 | 28,950 | Notes payable | 49,000 | 50,000 |
Inventory | 64,900 | 64,000 | Total | $ 123,750 | $ 108,500 |
Total | $ 102,250 | $ 103,250 | Long-term debt | $ 64,400 | $ 63,200 |
Owners' equity | |||||
Common stock and paid-in surplus | $ 84,000 | $ 84,000 | |||
Fixed assets | Retained earnings | 166,100 | 190,550 | ||
Net plant and equipment | $ 336,000 | $ 343,000 | Total | $ 250,100 | $ 274,550 |
Total assets | $ 438,250 | $ 446,250 | Total liabilities and owners' equity | $ 438,250 | $ 446,250 |
Requirement 1: |
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2008. |
(a) | Current ratio |
(Click to select)0.830.90.710.760.95 |
(b) | Quick ratio |
(Click to select)0.260.30.320.350.28 |
(c) | Cash ratio |
(Click to select)0.080.090.060.110.07 |
(d) | NWC to total assets ratio |
(Click to select)-4.91%-4.17%-5.65%-4.52%-5.3% |
(e) | Debt-equity ratio and equity multiplier |
(Click to select)0.81 and 1.890.69 and 1.610.75 and 1.750.64 and 1.490.86 and 2.01 |
(f) | Total debt ratio and Long-term debt ratio |
(Click to select)0.43 and 0.20.49 and 0.260.46 and 0.230.4 and 0.170.37 and 0.14 |
Requirement 2: |
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2009. |
(a) | Current ratio |
(Click to select)0.870.951.090.811.03 |
(b) | Quick ratio |
(Click to select)0.310.330.410.390.36 |
(c) | Cash ratio |
(Click to select)0.080.060.090.120.1 |
(d) | NWC to total assets ratio |
(Click to select)-1.16%-1.22%-1.18%-1.2%-1.14% |
(e) | Debt-equity ratio and equity multiplier |
(Click to select)0.68 and 1.760.72 and 1.870.58 and 1.50.63 and 1.630.54 and 1.39 |
(f) | Total debt ratio and Long-term debt ratio |
(Click to select)0.41 and 0.220.44 and 0.250.32 and 0.130.35 and 0.160.38 and 0.19 |
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