Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 40,010 $ 51,181 Accounts payable $ 191,922 $ 199,611 Accounts receivable 60,281 80,639 Notes payable 87,020 138,588 Inventory 128,441 194,689 Total $ 278,942 $ 338,199 Total $ 228,732 $ 326,509 Long-term debt $ 241,000 $ 177,750 Owners’ equity Common stock and paid-in surplus $ 214,000 $ 214,000 Accumulated retained earnings 152,537 186,038 Fixed assets Net plant and equipment $ 657,747 $ 589,478 Total $ 366,537 $ 400,038 Total assets $ 886,479 $ 915,987 Total liabilities and owners’ equity $ 886,479 $ 915,987 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.)
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 40,010 $ 51,181 Accounts payable $ 191,922 $ 199,611 Accounts receivable 60,281 80,639 Notes payable 87,020 138,588 Inventory 128,441 194,689 Total $ 278,942 $ 338,199 Total $ 228,732 $ 326,509 Long-term debt $ 241,000 $ 177,750 Owners’ equity Common stock and paid-in surplus $ 214,000 $ 214,000 Accumulated retained earnings 152,537 186,038 Fixed assets Net plant and equipment $ 657,747 $ 589,478 Total $ 366,537 $ 400,038 Total assets $ 886,479 $ 915,987 Total liabilities and owners’ equity $ 886,479 $ 915,987 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 reports the following |
| 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 | $ | 40,010 | $ | 51,181 | Accounts payable | $ | 191,922 | $ | 199,611 | ||||
| Accounts receivable | 60,281 | 80,639 | Notes payable | 87,020 | 138,588 | ||||||||
| Inventory | 128,441 | 194,689 |
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Total | $ | 278,942 | $ | 338,199 | |||
| Total | $ | 228,732 | $ | 326,509 |
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Long-term debt | $ | 241,000 | $ | 177,750 | |||
| Owners’ equity | |||||||||||||
| Common stock and paid-in surplus | $ | 214,000 | $ | 214,000 | |||||||||
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152,537 | 186,038 | |||||||||||
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| Net plant and equipment | $ | 657,747 | $ | 589,478 | Total | $ | 366,537 | $ | 400,038 | ||||
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| Total assets | $ | 886,479 | $ | 915,987 | Total liabilities and owners’ equity | $ | 886,479 | $ | 915,987 | ||||
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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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