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

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
icon
Related questions
Question
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

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education