Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

20th Edition

1609303164, 978-1609303167

More Books

Students also viewed these Finance questions