Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for...
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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 Current assets Cash Accounts receivable Inventory Total Net plant and equipment Total assets Assets 2017 $ 8,250 34,500 58,500 $ 101,250 $273,750 JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets 2018 $ 12,240 40,560 86,160 $ 138,960 $ 341,040 $375,000 $480,000 Liabilities and Owners' Equity 2017 Current liabilities Accounts payable Notes payable Total $ 43,500 29,625 Total Long-term debt Owners' equity Common stock and paid-in $60,000 surplus Retained earnings 196,875 Total liabilities and owners' equity $ 73,125 $ 45,000 $256,875 $375,000 2018 $ 48,240 32,160 $ 80,400 $ 36,000 $ 60,000 303,600 $363,600 $480,000 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 Current assets Cash Accounts receivable Inventory Total Net plant and equipment Total assets Assets 2017 $ 8,250 34,500 58,500 $ 101,250 $273,750 JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets 2018 $ 12,240 40,560 86,160 $ 138,960 $ 341,040 $375,000 $480,000 Liabilities and Owners' Equity 2017 Current liabilities Accounts payable Notes payable Total $ 43,500 29,625 Total Long-term debt Owners' equity Common stock and paid-in $60,000 surplus Retained earnings 196,875 Total liabilities and owners' equity $ 73,125 $ 45,000 $256,875 $375,000 2018 $ 48,240 32,160 $ 80,400 $ 36,000 $ 60,000 303,600 $363,600 $480,000
Expert Answer:
Answer rating: 100% (QA)
a Current Ratio The current ratio is calculated by dividing current assets by current liabilities For 2017 Current Ratio Current Assets Current Liabil... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Posted Date:
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