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 $ 40,010 $ 51,181 Accounts payable $ 191,922 $ 199,611 Accounts receivable 60,281 80,639 Notes payable 87,020 138,588 Inventory 128,441 194,689 Total $ 278,942 $ 338,199 Total $ 228,732 $ 326,509 Long-term debt $ 241,000 $ 177,750 Owners’ equity Common stock and paid-in surplus $ 214,000 $ 214,000 Accumulated retained earnings 152,537 186,038 Fixed assets Net plant and equipment $ 657,747 $ 589,478 Total $ 366,537 $ 400,038 Total assets $ 886,479 $ 915,987 Total liabilities and owners’ equity $ 886,479 $ 915,987 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.)

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 $ 40,010 $ 51,181 Accounts payable $ 191,922 $ 199,611 Accounts receivable 60,281 80,639 Notes payable 87,020 138,588 Inventory 128,441 194,689 Total $ 278,942 $ 338,199 Total $ 228,732 $ 326,509 Long-term debt $ 241,000 $ 177,750 Owners’ equity Common stock and paid-in surplus $ 214,000 $ 214,000 Accumulated retained earnings 152,537 186,038 Fixed assets Net plant and equipment $ 657,747 $ 589,478 Total $ 366,537 $ 400,038 Total assets $ 886,479 $ 915,987 Total liabilities and owners’ equity $ 886,479 $ 915,987 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.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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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	$	40,010	$	51,181	Accounts payable	$	191,922	$	199,611
Accounts receivable		60,281		80,639	Notes payable		87,020		138,588
Inventory		128,441		194,689
					Total	$	278,942	$	338,199
Total	$	228,732	$	326,509
					Long-term debt	$	241,000	$	177,750
					Owners’ equity
					Common stock and paid-in surplus	$	214,000	$	214,000
					Accumulated retained earnings		152,537		186,038
Fixed assets
Net plant and equipment	$	657,747	$	589,478	Total	$	366,537	$	400,038

Total assets	$	886,479	$	915,987	Total liabilities and owners’ equity	$	886,479	$	915,987

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.)

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