Description of this paper

Loading

Bethesda Mining Company reports the following balance sheet-(Answered)

Description

Step-by-step Instant Solution


Question

Bethesda Mining Company reports the following balance sheet information for 2013 and 2014.


BETHESDA MINING COMPANY
Balance Sheets as of December 31, 2013 and 2014
2013 2014 2013 2014
?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 ?
? ?


Required:
Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:
?
(a)

Current ratio.?(Do not round intermediate calculations.?Round your answers to 2 decimal places (e.g., 32.16).)


? Current ratio?
??2013 ?times??
??2014 ?times ?


(b)

Quick ratio.?(Do not round intermediate calculations.?Round your answers to 2 decimal places (e.g., 32.16).)


? Quick ratio?
??2013 ?times??
??2014 ?times ?


(c)

Cash ratio.?(Do not round intermediate calculations.?Round your answers to 2 decimal places (e.g., 32.16).)


? Cash ratio??
??2013 ?times??
??2014 ?times ?


(d)

Debt-equity ratio and equity multiplier.?(Do not round intermediate calculations.?Round your answers to 2 decimal places (e.g., 32.16).)


? Debt-equity ratio Equity multiplier
??2013 ???times????? ??times???
??2014 ?times?????? ?times?????


(e)

Total debt ratio.?(Do not round intermediate calculations.?Round your answers to 2 decimal places (e.g., 32.16).)


? ?Total debt ratio
??2013 ??times??
??2014 ?times???


 

Paper#9255802 | Written in 27-Jul-2016

Price : $16
SiteLock