Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA MINING COMPANYBalance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 29,266 $ 38,098 Accounts payable $ 193,922 $ 201,611 Accounts receivable 58,281 78,639 Notes payable 89,020 140,588 Inventory 133,148 199,946 Total $ 282,942 $ 342,199 Total $ 220,695 $ 316,683 Long-term debt $ 245,000 $ 181,750 Owners’ equity Common stock and paid-in surplus $ 210,000 $ 210,000 Accumulated retained earnings 140,100 172,012 Fixed assets Net plant and equipment $ 657,347 $ 589,278 Total $ 350,100 $ 382,012 Total assets $ 878,042 $ 905,961 Total liabilities and owners’ equity $ 878,042 $ 905,961 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 COMPANYBalance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 29,266 $ 38,098 Accounts payable $ 193,922 $ 201,611 Accounts receivable 58,281 78,639 Notes payable 89,020 140,588 Inventory 133,148 199,946 Total $ 282,942 $ 342,199 Total $ 220,695 $ 316,683 Long-term debt $ 245,000 $ 181,750 Owners’ equity Common stock and paid-in surplus $ 210,000 $ 210,000 Accumulated retained earnings 140,100 172,012 Fixed assets Net plant and equipment $ 657,347 $ 589,278 Total $ 350,100 $ 382,012 Total assets $ 878,042 $ 905,961 Total liabilities and owners’ equity $ 878,042 $ 905,961 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

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 18CE: Cornerstone Exercise 1-18 Balance Sheet An analysis of the transactions of Cavernous Homes Inc....

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Question

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	$	29,266	$	38,098	Accounts payable	$	193,922	$	201,611
Accounts receivable		58,281		78,639	Notes payable		89,020		140,588
Inventory		133,148		199,946
					Total	$	282,942	$	342,199
Total	$	220,695	$	316,683
					Long-term debt	$	245,000	$	181,750
					Owners’ equity
					Common stock and paid-in surplus	$	210,000	$	210,000
					Accumulated retained earnings		140,100		172,012
Fixed assets
Net plant and equipment	$	657,347	$	589,278	Total	$	350,100	$	382,012

Total assets	$	878,042	$	905,961	Total liabilities and owners’ equity	$	878,042	$	905,961

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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