JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 10,150 $ 10,350 Accounts payable $ 74,500 $ 61,250 Accounts receivable 27,100 27,250 Notes payable 48,500 49,250 Inventory 62,900 63,500 Total $ 123,000 $ 110,500 Total $ 100,150 $ 101,100 Long-term debt $ 59,400 $ 64,900 Owners' equity Common stock and paid-in surplus $ 80,000 $ 80,000 Fixed assets Retained earnings 171,750 192,700 Net plant and equipment $ 334,000 $ 347,000 Total $ 251,750 $ 272,700 Total assets $ 434,150 $ 448,100 Total liabilities and owners' equity $ 434,150 $ 448,100 Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2017. a. Current ratio b. Quick ratio C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018. a. Current ratio b. Quick ratio C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio
JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 10,150 $ 10,350 Accounts payable $ 74,500 $ 61,250 Accounts receivable 27,100 27,250 Notes payable 48,500 49,250 Inventory 62,900 63,500 Total $ 123,000 $ 110,500 Total $ 100,150 $ 101,100 Long-term debt $ 59,400 $ 64,900 Owners' equity Common stock and paid-in surplus $ 80,000 $ 80,000 Fixed assets Retained earnings 171,750 192,700 Net plant and equipment $ 334,000 $ 347,000 Total $ 251,750 $ 272,700 Total assets $ 434,150 $ 448,100 Total liabilities and owners' equity $ 434,150 $ 448,100 Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2017. a. Current ratio b. Quick ratio C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018. a. Current ratio b. Quick ratio C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.9MCP
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| JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets |
|||||
| Assets | Liabilities and Owners' Equity | ||||
| 2017 | 2018 | 2017 | 2018 | ||
| Current assets | Current liabilities | ||||
| Cash | $ 10,150 | $ 10,350 | Accounts payable | $ 74,500 | $ 61,250 |
| Accounts receivable | 27,100 | 27,250 | Notes payable | 48,500 | 49,250 |
| Inventory | 62,900 | 63,500 | Total |
$ 123,000 |
$ 110,500 |
| Total |
$ 100,150 |
$ 101,100 |
Long-term debt | $ 59,400 | $ 64,900 |
| Owners' equity | |||||
| Common stock and paid-in surplus | $ 80,000 | $ 80,000 | |||
| Fixed assets | |
171,750 |
192,700 |
||
| Net plant and equipment | $ 334,000 | $ 347,000 | Total | $ 251,750 | $ 272,700 |
| Total assets |
$ 434,150 |
$ 448,100 |
Total liabilities and owners' equity |
$ 434,150 |
$ 448,100 |
C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio
|
| Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018. |
C. Cash Ratio D. NWC total asset ratio E. Debt-Equity Ratio and equity multiplier F. Total Debt Ratio and ling term debt Ratio
|
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