Question

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

  

JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	6,560			$	8,600			Accounts payable	$	51,840			$	53,000
Accounts receivable		16,160				22,600			Notes payable		21,600				23,600
Inventory		61,280				74,600
Total	$	84,000			$	105,800			Total	$	73,440			$	76,600
									Long-term debt	$	32,000			$	30,000
									Owners’ equity
									Common stock and paid-in surplus	$	40,000			$	40,000
									Retained earnings		174,560				253,400
Net plant and equipment	$	236,000			$	294,200			Total	$	214,560			$	293,400
Total assets	$	320,000			$	400,000			Total liabilities and owners’ equity	$	320,000			$	400,000

  

Based on the balance sheets given for Just Dew It:

    

a.	Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b.	Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c.	Calculate the cash ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
d.	Calculate the NWC to total assets ratio for each year. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
e.	Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
f.	Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Answer 1