Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ust Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets 2020
ust Dew It Corporation reports the following balance sheet information for 2020 and 2021. |
JUST DEW IT CORPORATION | |||||
2020 and 2021 Balance Sheets | |||||
Assets | 2020 | 2021 | Liabilities and Owners’ Equity | 2020 | 2021 |
---|---|---|---|---|---|
Current assets | Current liabilities | ||||
Cash | $ 10,620 | $ 13,275 | Accounts payable | $ 52,560 | $ 60,750 |
Accounts receivable | 21,420 | 29,925 | Notes payable | 19,260 | 24,075 |
Inventory | 67,860 | 82,575 | |||
Total | $ 99,900 | $ 125,775 | Total | $ 71,820 | $ 84,825 |
Long-term debt | $ 36,000 | $ 27,000 | |||
Owners’ equity | |||||
Common stock and paid-in surplus | $ 45,000 | $ 45,000 | |||
Retained earnings | 207,180 | 293,175 | |||
Net plant and equipment | $ 260,100 | $ 324,225 | Total | $ 252,180 | $ 338,175 |
Total assets | $ 360,000 | $ 450,000 | Total liabilities and owners’ equity | $ 360,000 | $ 450,000 |
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 and 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
★★★★★
3.57 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
A Current ratio Current assetsCurrent liabilities Year 2020 99900 71820 139 times Year 2021 125775 8...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started