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.)
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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
| BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 |
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| 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 |
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Total | $ | 268,942 | $ | 328,199 | |||
| Total | $ | 247,427 | $ | 349,675 |
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Long-term debt | $ | 231,000 | $ | 167,750 | |||
| Owners’ equity | |||||||||||||
| Common stock and paid-in surplus | $ | 224,000 | $ | 224,000 | |||||||||
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182,232 | 219,704 | |||||||||||
| Fixed assets |
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| Net plant and equipment | $ | 658,747 | $ | 589,978 | Total | $ | 406,232 | $ | 443,704 | ||||
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| Total assets | $ | 906,174 | $ | 939,653 | Total liabilities and owners’ equity | $ | 906,174 | $ | 939,653 | ||||
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| 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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