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.
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
Related questions
Question
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 | 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.
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