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

# 8

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 $ 67,906 $ 85,508 Accounts payable $ 186,422 $ 194,111
Accounts receivable 65,781 86,139 Notes payable 81,520 133,088
Inventory 115,499 180,234 Total $ 267,942 $ 327,199
Total $ 249,186 $ 351,881 Long-term debt $ 230,000 $ 166,750
Owners’ equity
Common stock and paid-in surplus $ 225,000 $ 225,000
Fixed assets Accumulated retained earnings 185,091 222,960
Net plant and equipment $ 658,847 $ 590,028 Total $ 410,091 $ 447,960
Total assets $ 908,033 $ 941,909 Total liabilities and owners’ equity $ 908,033 $ 941,909

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 and round your answers to 2 decimal places, e.g., 32.16.)

Current ratio

2015 ___ times

2016 ___ times

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

Quick ratio

2015 ___ times

2016 ___ times

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   2015 ___ times

2016 ___ times   2016 ___ times

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

Total debt ratio

2015 ___ times

2016 ___ times

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