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	$   10,250	$ 10,750	Accounts payable	$ 72,250	$ 58,000
Accounts receivable	28,850	28,800	Notes payable	46,500	45,500
Inventory	64,600	64,900	Total	$ 118,750	$ 103,500
Total	$ 103,700	$ 104,450	Long-term debt	$ 57,900	$  64,300
			Owners' equity
			Common stock and paid-in surplus	$   80,000	$   80,000
Fixed assets			Retained earnings	177,050	206,650
Net plant and equipment	$ 330,000	$ 350,000	Total	$ 257,050	$ 286,650
Total assets	$ 433,700	$ 454,450	Total liabilities and    owners' equity	$ 433,700	$ 454,450

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

rev: 12_20_2018_QC_CS-152109

Answer 1