17) Based on the balance sheet given for Just Dew It, calculate the following financial ratios for each year: current ratio quick ration cash ratio NWC to total assets ratio debt-equity ratio and equity multiplier Total debt ratio and long-term debt ration
17) Based on the balance sheet given for Just Dew It, calculate the following financial ratios for each year: current ratio quick ration cash ratio NWC to total assets ratio debt-equity ratio and equity multiplier Total debt ratio and long-term debt ration
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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17) Based on the
quick ration
cash ratio
NWC to total assets ratio
debt-equity ratio and equity multiplier
Total debt ratio and long-term debt ration
![Just Dew It Corporation reports the following balance sheet information for 2020
and 2021. Use this information to work Problems 13 through 17.
JUST DEW IT CORPORATION
2020 and 2021 Balance Sheets
Assets
Liabilities and Owners' Equity
2020
2021
2020
2021
Current assets
Current liabilities
Cash
$ 14,588
$ 17,631
Accounts payable $ 55,653 $ 63,073
Accounts receivable
35,258
41,019
Notes payable
21,895
25,324
Inventory
65,567
71,505
$ 77,548 $ 88,397
Total
Total
$115,413
$130,155
Long-term debt
$458,000 $ 62,000
Owners' equity
Common stock and
paid-in surplus
$ 60,000 $ 60,000
Retained earnings
397,278
418,179
Net plant and equipment
$477,413 $498,421
Total
$457,278 $478,179
Total liabilities and
Total assets
$592,826 $628,576
owners' equity
$592,826 $628,576
13. Preparing Standardized Financial Statements [LO1] Prepare the 2020 and 2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c7a1b77-d568-478e-baf9-1887404d8be2%2F2a380e6d-0a9f-404d-b3a3-ec7f19a48466%2Fl9b707.jpeg&w=3840&q=75)
Transcribed Image Text:Just Dew It Corporation reports the following balance sheet information for 2020
and 2021. Use this information to work Problems 13 through 17.
JUST DEW IT CORPORATION
2020 and 2021 Balance Sheets
Assets
Liabilities and Owners' Equity
2020
2021
2020
2021
Current assets
Current liabilities
Cash
$ 14,588
$ 17,631
Accounts payable $ 55,653 $ 63,073
Accounts receivable
35,258
41,019
Notes payable
21,895
25,324
Inventory
65,567
71,505
$ 77,548 $ 88,397
Total
Total
$115,413
$130,155
Long-term debt
$458,000 $ 62,000
Owners' equity
Common stock and
paid-in surplus
$ 60,000 $ 60,000
Retained earnings
397,278
418,179
Net plant and equipment
$477,413 $498,421
Total
$457,278 $478,179
Total liabilities and
Total assets
$592,826 $628,576
owners' equity
$592,826 $628,576
13. Preparing Standardized Financial Statements [LO1] Prepare the 2020 and 2021
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