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$65,470 $82,487 Accounts payable$186,922 $194,611 Accounts receivable 65,281 85,639 Notes payable 82,020 133,588 Inventory 116,676 181,549 Total$268,942 $328,199 Total$247,427 $349,675 Long-term debt$231,000 $167,750 Owners’ equity Common stock and paid-in surplus$224,000 $224,000 Accumulated retained earnings 182,232 219,704 Fixed assets Net plant and equipment$658,747 $589,978 Total$406,232 $443,704 Total assets$906,174 $939,653 Total liabilities and owners’ equity$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.)

Answered: Calculate the following financial…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23: Statement Of Cash Flows

Section: Chapter Questions

Problem 3SEB

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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	$	65,470	$	82,487	Accounts payable	$	186,922	$	194,611
Accounts receivable		65,281		85,639	Notes payable		82,020		133,588
Inventory		116,676		181,549
					Total	$	268,942	$	328,199
Total	$	247,427	$	349,675
					Long-term debt	$	231,000	$	167,750
					Owners’ equity
					Common stock and paid-in surplus	$	224,000	$	224,000
					Accumulated retained earnings		182,232		219,704
Fixed assets
Net plant and equipment	$	658,747	$	589,978	Total	$	406,232	$	443,704

Total assets	$	906,174	$	939,653	Total liabilities and owners’ equity	$	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.)

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