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	$   10,150	$ 10,350	Accounts payable	$ 74,500	$ 61,250
Accounts receivable	27,100	27,250	Notes payable	48,500	49,250
Inventory	62,900	63,500	Total	$ 123,000	$ 110,500
Total	$ 100,150	$ 101,100	Long-term debt	$ 59,400	$  64,900
			Owners' equity
			Common stock and paid-in surplus	$   80,000	$   80,000
Fixed assets			Retained earnings	171,750	192,700
Net plant and equipment	$ 334,000	$ 347,000	Total	$ 251,750	$ 272,700
Total assets	$ 434,150	$ 448,100	Total liabilities and    owners' equity	$ 434,150	$ 448,100

Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2017.

a.	Current ratio

b.	Quick ratio

c.	Cash ratio

d.	NWC to total assets ratio

e.	Debt-equity ratio and equity multiplier

f.	Total debt ratio and long-term debt ratio

Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2018.

a.	Current ratio

b.	Quick ratio

c.	Cash ratio

d.	NWC to total assets ratio

e.	Debt-equity ratio and equity multiplier

f.	Total debt ratio and long-term debt ratio

Answer 1