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Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 Assets 2021 2022 Liabilities and Owners’ Equity 2021 2022 Current assets     Current liabilities     Cash $ 50,434 $ 63,944 Accounts payable $ 189,922 $ 197,611 Accounts receivable 62,281 82,639 Notes payable 85,020 136,588 Inventory 123,735 189,433 Total $ 274,942 $ 334,199 Total $ 236,450 $ 336,016 Long-term debt $ 237,000 $ 173,750       Owners’ equity           Common stock and paid-in surplus $ 218,000 $ 218,000 Fixed assets     Accumulated retained earnings 164,655 199,745 Net plant and equipment $ 658,147 $ 589,678 Total $ 382,655 $ 417,745 Total assets $ 894,597 $ 925,694 Total liabilities and owners’ equity $ 894,597 $ 925,694 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year: Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Total debt ratio.

Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 Assets 2021 2022 Liabilities and Owners’ Equity 2021 2022 Current assets     Current liabilities     Cash $ 50,434 $ 63,944 Accounts payable $ 189,922 $ 197,611 Accounts receivable 62,281 82,639 Notes payable 85,020 136,588 Inventory 123,735 189,433 Total $ 274,942 $ 334,199 Total $ 236,450 $ 336,016 Long-term debt $ 237,000 $ 173,750       Owners’ equity           Common stock and paid-in surplus $ 218,000 $ 218,000 Fixed assets     Accumulated retained earnings 164,655 199,745 Net plant and equipment $ 658,147 $ 589,678 Total $ 382,655 $ 417,745 Total assets $ 894,597 $ 925,694 Total liabilities and owners’ equity $ 894,597 $ 925,694 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year: Current ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Quick ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash ratio. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Debt-equity ratio and equity multiplier. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Total debt ratio.

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:

BETHESDA MINING COMPANY
Balance Sheets as of December 31, 2021 and 2022
Assets 2021 2022 Liabilities and Owners’ Equity 2021 2022
Current assets     Current liabilities    
Cash $ 50,434 $ 63,944 Accounts payable $ 189,922 $ 197,611
Accounts receivable 62,281 82,639 Notes payable 85,020 136,588
Inventory 123,735 189,433 Total $ 274,942 $ 334,199
Total $ 236,450 $ 336,016 Long-term debt $ 237,000 $ 173,750
      Owners’ equity    
      Common stock and paid-in surplus $ 218,000 $ 218,000
Fixed assets     Accumulated retained earnings 164,655 199,745
Net plant and equipment $ 658,147 $ 589,678 Total $ 382,655 $ 417,745
Total assets $ 894,597 $ 925,694 Total liabilities and owners’ equity $ 894,597 $ 925,694

Based on the balance sheets given, calculate the following financial ratios for each year:

Calculate the following financial ratios for each year:

  1. Current ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  2. Quick ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  3. Cash ratio.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  4. Debt-equity ratio and equity multiplier.

    Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

  5. Total debt ratio.

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