1.Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

JUST DEW IT CORPORATION

2017 and 2018 Balance Sheets

Assets

Liabilities and Owners' Equity

2017

2018

2017

2018

Current assets

Current liabilities

Cash

$10,150

$ 10,300

Accounts payable

$ 70,250

$61,250

Accounts receivable

27,700

28,950

Notes payable

47,250

46,750

Inventory

62,300

64,800

Total

$ 117,500

$108,000

Total

$ 100,150

$104,050

Long-term debt

$ 59,900

$63,900

Owners' equity

Common stock and paid-in surplus

$89,000

$89,000

Fixed assets

Retained earnings

158,750

185,150

Net plant and equipment

$ 325,000

$ 342,000

Total

$ 247,750

$ 274,150

Total assets

$ 425,150

$ 446,050

Total liabilities and

owners' equity

$ 425,150

$ 446,050

Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2017.

a.Current ratio

CA = CL + NWC

CA = 100,150

Current assets / Current liabilities = 100,150 / 117,500 = 0.85

b.Quick ratio

Quick ratio = (CA Inventory) / CL = 100,150 - 62,300 = 37,850 / 117,500 = 0.32

c.Cash ratio

Cash / Current Liabilities = $10,150 / 117,500 = 0.09

d.NWC to total assets ratio

NWC / Total assets =

e.Debt-equity ratio and equity multiplier

Debt-equity ratio = Total debt / Total equity =

Equity multiplier = Total assets / Total equity =

f.Total debt ratio and long-term debt ratio

Total debt ratio = Total assets - Total equity / Total assets =

Long-term debt ratio = Long-term debt / Long-term debt + Total equity =

Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018.

a.Current ratio

CA = CL + NWC

CA = $ 104,050

Current assets / Current liabilities = $ 104,050 / $108,000 = 0.96

b.Quick ratio

Quick ratio = (CA Inventory) / CL = $104,050 - $64,800 = $39,250 / 108,000 = 0.36

c.Cash ratio

Cash / Current Liabilities = $10,300 / $108,000 = 0.095 or 0.10

d.NWC to total assets ratio

NWC / Total assets =

e.Debt-equity ratio and equity multiplier

Debt-equity ratio = Total debt / Total equity =

Equity multiplier = Total assets / Total equity =

f.Total debt ratio and long-term debt ratio

Total debt ratio = Total assets - Total equity / Total assets =

Long-term debt ratio = Long-term debt / Long-term debt + Total equity =