Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities

Just Dew It Corporation reports the following balance sheet information for 2014 and 2015.

JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets
Assets Liabilities and Owners Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 6,600 $ 15,250 Accounts payable $ 62,400 $ 65,750
Accounts receivable 26,600 29,750 Notes payable 26,400 31,500
Inventory 75,800 92,250
Total $ 109,000 $ 137,250 Total $ 88,800 $ 97,250
Long-term debt $ 50,000 $ 40,000
Owners equity
Common stock and paid-in surplus $ 52,000 $ 52,000
Retained earnings 209,200 310,750
Net plant and equipment $ 291,000 $ 362,750 Total $ 261,200 $ 362,750
Total assets $ 400,000 $ 500,000 Total liabilities and owners equity $ 400,000 $ 500,000

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.)

2014 2015
Current ratio times times

b.

Calculate the quick ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

2014 2015
Quick ratio times times

c.

Calculate the cash ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

2014 2015
Cash ratio times times

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.)

2014 2015
NWC ratio % %

e.

Calculate the debtequity ratio and equity multiplier for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

2014 2015
Debt-equity ratio times times
Equity 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.)

2014 2015
Total debt ratio times times
Long-term debt ratio 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_2

Step: 3

blur-text-image_3

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

Elements Of Financial Risk Management

Authors: Peter Christoffersen

2nd Edition

0128102357, 9780128102350

More Books

Students also viewed these Finance questions

Question

How can either be made stronger?

Answered: 1 week ago