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Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: Assets Current assets BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 2022 Cash Accounts receivable Inventory $ 34,678 59,281 130,795 $ 224,754 $ 44,680 Total 79,639 197,317 $ 321,636 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 192,922 88,020 $ 280,942 $243,000 Fixed assets $ 212,000 146,359 Net plant and equipment Total assets $ 657,547 $882,301 $589,378 $ 911,014 Total liabilities and owners' equity $ 358,359 $882,301 2022 $ 200,611 139,588 $ 340,199 $ 179,750 $ 212,000 179,065 $ 391,065 $ 911,014 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year. a. Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. e. Total debt ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. a. 2021 Current ratio 2022 Current ratio b. 2021 Quick ratio 2022 Quick ratio c. 2021 Cash ratio 2022 Cash ratio 0.80 times 0.95 times 0.33 mes 0.37 times 0.12 times 0.13 mes d. 2021 Debt-equity ratio 1.46 times 2021 Equity multiplier 1.33 mes 2022 Debt-equity ratio 2022 Equity multiplier 2.46 times 2.33 times e. 2021 Total debt ratio 0.59 times 2022 Total debt ratio 0.57 mes

Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: Assets Current assets BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 2022 Cash Accounts receivable Inventory $ 34,678 59,281 130,795 $ 224,754 $ 44,680 Total 79,639 197,317 $ 321,636 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 192,922 88,020 $ 280,942 $243,000 Fixed assets $ 212,000 146,359 Net plant and equipment Total assets $ 657,547 $882,301 $589,378 $ 911,014 Total liabilities and owners' equity $ 358,359 $882,301 2022 $ 200,611 139,588 $ 340,199 $ 179,750 $ 212,000 179,065 $ 391,065 $ 911,014 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year. a. Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. e. Total debt ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. a. 2021 Current ratio 2022 Current ratio b. 2021 Quick ratio 2022 Quick ratio c. 2021 Cash ratio 2022 Cash ratio 0.80 times 0.95 times 0.33 mes 0.37 times 0.12 times 0.13 mes d. 2021 Debt-equity ratio 1.46 times 2021 Equity multiplier 1.33 mes 2022 Debt-equity ratio 2022 Equity multiplier 2.46 times 2.33 times e. 2021 Total debt ratio 0.59 times 2022 Total debt ratio 0.57 mes

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: Assets Current assets BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 2022 Cash Accounts receivable Inventory $ 34,678 59,281 130,795 $ 224,754 $ 44,680 Total 79,639 197,317 $ 321,636 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 192,922 88,020 $ 280,942 $243,000 Fixed assets $ 212,000 146,359 Net plant and equipment Total assets $ 657,547 $882,301 $589,378 $ 911,014 Total liabilities and owners' equity $ 358,359 $882,301 2022 $ 200,611 139,588 $ 340,199 $ 179,750 $ 212,000 179,065 $ 391,065 $ 911,014 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year. a. Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. e. Total debt ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. a. 2021 Current ratio 2022 Current ratio b. 2021 Quick ratio 2022 Quick ratio c. 2021 Cash ratio 2022 Cash ratio 0.80 times 0.95 times 0.33 mes 0.37 times 0.12 times 0.13 mes d. 2021 Debt-equity ratio 1.46 times 2021 Equity multiplier 1.33 mes 2022 Debt-equity ratio 2022 Equity multiplier 2.46 times 2.33 times e. 2021 Total debt ratio 0.59 times 2022 Total debt ratio 0.57 mes
Transcribed Image Text:Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: Assets Current assets BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 2022 Cash Accounts receivable Inventory $ 34,678 59,281 130,795 $ 224,754 $ 44,680 Total 79,639 197,317 $ 321,636 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 192,922 88,020 $ 280,942 $243,000 Fixed assets $ 212,000 146,359 Net plant and equipment Total assets $ 657,547 $882,301 $589,378 $ 911,014 Total liabilities and owners' equity $ 358,359 $882,301 2022 $ 200,611 139,588 $ 340,199 $ 179,750 $ 212,000 179,065 $ 391,065 $ 911,014 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year. a. Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. e. Total debt ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. a. 2021 Current ratio 2022 Current ratio b. 2021 Quick ratio 2022 Quick ratio c. 2021 Cash ratio 2022 Cash ratio 0.80 times 0.95 times 0.33 mes 0.37 times 0.12 times 0.13 mes d. 2021 Debt-equity ratio 1.46 times 2021 Equity multiplier 1.33 mes 2022 Debt-equity ratio 2022 Equity multiplier 2.46 times 2.33 times e. 2021 Total debt ratio 0.59 times 2022 Total debt ratio 0.57 mes
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