Question

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.

BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016
	2015				2016					2015				2016
Assets									Liabilities and Owners’ Equity
Current assets									Current liabilities
Cash	$	72,718			$	91,489			Accounts payable	$	185,422			$	193,111
Accounts receivable		66,781				87,139			Notes payable		80,520				132,088
Inventory		113,146				177,607			Total	$	265,942			$	325,199
Total	$	252,645			$	356,235			Long-term debt	$	228,000			$	164,750
									Owners’ equity
									Common stock and paid-in surplus	$	227,000			$	227,000
Fixed assets									Accumulated retained earnings		190,750				229,414
Net plant and equipment	$	659,047			$	590,128			Total	$	417,750			$	456,414
Total assets	$	911,692			$	946,363			Total liabilities and owners’ equity	$	911,692			$	946,363

Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:

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

	Cash ratio
2015		times
2016		times

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

	Debt−equity ratio				Equity multiplier
2015			times				times
2016			times				times

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

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE