ust Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT
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Question:
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.) |
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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