Question
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 |
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