Question

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	$	63,014		$	79,447		Accounts payable	$	187,422		$	195,111
Accounts receivable		64,781			85,139		Notes payable		82,520			134,088
Inventory		117,852			182,862
							Total	$	269,942		$	329,199
Total	$	245,647		$	347,448
							Long-term debt	$	232,000		$	168,750
							Owners’ equity
							Common stock and paid-in surplus	$	223,000		$	223,000
							Accumulated retained earnings		179,352			216,427
Fixed assets
Net plant and equipment	$	658,647		$	589,928		Total	$	402,352		$	439,427
Total assets	$	904,294		$	937,376		Total liabilities and owners’ equity	$	904,294		$	937,376

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.)

	a. 2018 current ratio times 2019 current ratio times b. 2018 Quick ratio times 2019 Quick ratio times c. 2018 Cash ratio times 2019 Cash ratio times d. 2018 Debt-equity ratio times 2018 Equity multiplier times 2019 Debt-equity ratio times 2019 Equity multiplier times e 2018 Total debt ratio times 2019 Total debt ratio times

Answer 1