Calculating Financial Ratios Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA
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Calculating Financial Ratios
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. |
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 | |||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||
Assets | Liabilities and Owners’ Equity | ||||||||||||
Current assets | Current liabilities | ||||||||||||
Cash | $ | 67,906 | $ | 85,508 | Accounts payable | $ | 186,422 | $ | 194,111 | ||||
Accounts receivable | 65,781 | 86,139 | Notes payable | 81,520 | 133,088 | ||||||||
Inventory | 115,499 | 180,234 | |||||||||||
Total | $ | 267,942 | $ | 327,199 | |||||||||
Total | $ | 249,186 | $ | 351,881 | |||||||||
Long-term debt | $ | 230,000 | $ | 166,750 | |||||||||
Owners’ equity | |||||||||||||
Common stock and paid-in surplus | $ | 225,000 | $ | 225,000 | |||||||||
Accumulated retained earnings | 185,091 | 222,960 | |||||||||||
Fixed assets | |||||||||||||
Net plant and equipment | $ | 658,847 | $ | 590,028 | Total | $ | 410,091 | $ | 447,960 | ||||
Total assets | $ | 908,033 | $ | 941,909 | Total liabilities and owners’ equity | $ | 908,033 | $ | 941,909 | ||||
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.) |
Related Book For
Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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