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Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. Assets Current assets Cash $ 65,470...

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Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. Assets Current assets Cash $ 65,470 $82,487 Accounts receivable 65,281 85,639 181,549 Inventory 116,676 Total Fixed assets Net plant and equipment BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 Total assets 349,675 $247,427 $1 $658,747 $ *589,978 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Total $906,174 $939,653 Total liabilities and owners' equity Calculate the following financial ratios for each year: 2018 2019 Long-term debt $ 231,000 $ 167,750 Owners' equity Common stock and paid-in $224,000 $224.000 surplus Accumulated retained 182,232 219,704 earnings $186,922 $ 194,611 82,020 133,588 $268,942 $328,199 $406,232 $443,704 $906,174 $939,653 Calculate the following financial ratios for each year: a. Current ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. Debt-equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. 2018 current ratio 2019 current ratio b. 2018 Quick ratio 2019 Quick ratio c. 2018 Cash ratio. 2019 Cash ratio d. 2018 Debt-equity ratio 2018 Equity multiplier 2019 Debt-equity ratio 2019 Equity multiplier 2018 Total debt ratio 2019 Total debt ratio e times times times times times times times times times times times times

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a Current ratio of 2018 is computed as follows current assets current liabilities 247 427 268 942 0 View the full answer


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Related Book For  answer-question
Essentials Of Corporate Finance

Essentials Of Corporate Finance

ISBN: 9781265414962

11th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: May 30, 2023 01:40:14
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The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.

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