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Just Drew It Corporation reports the following balance sheet information for 2017 and 2018 Saved Just Dew It Corporation reports the following balance sheet information
Just Drew It Corporation reports the following balance sheet information for 2017 and 2018
Saved Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017 2018 Current assets Cash Accounts receivable Inventory $ 7,950 23,550 36,750 JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 11,800 Accounts payable $ 40,500 29,000 Notes payable 14,850 47,000 $ 87,800 Total $ 55,350 $ 45,800 20,800 Total $ 68,250 $ 66,600 Long-term debt $ 30,000 $ 24,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 42,000 172,650 $ 42,000 267,400 Net plant and equipment $ 231,750 $ 312,200 Total $ 214,650 $309,400 Total assets $300,000 $400,000 Total liabilities and owners' equity $300,000 $400,000 Based on the balance sheets given for Just Dew it: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) 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.) e. Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Step by Step Solution
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