In: Accounting
Just Dew It Corporation reports the following balance sheet information for 2008 and 2009. |
JUST DEW IT CORPORATION 2008 and 2009 Balance Sheets |
|||||
Assets | Liabilities and Owners' Equity | ||||
2008 | 2009 | 2008 | 2009 | ||
Current assets | Current liabilities | ||||
Cash | $ 10,450 | $ 10,000 | Accounts payable | $ 70,750 | $ 63,000 |
Accounts receivable | 27,800 | 28,750 | Notes payable | 49,500 | 48,000 |
Inventory | 63,200 | 63,100 | Total |
$ 120,250 |
$ 111,000 |
Total |
$ 101,450 |
$ 101,850 |
Long-term debt | $ 64,900 | $ 62,700 |
Owners' equity | |||||
Common stock and paid-in surplus | $ 90,000 | $ 90,000 | |||
Fixed assets | Retained earnings |
144,300 |
182,150 |
||
Net plant and equipment | $ 318,000 | $ 344,000 | Total | $ 234,300 | $ 272,150 |
Total assets |
$ 419,450 |
$ 445,850 |
Total liabilities
and owners' equity |
$ 419,450 |
$ 445,850 |
Requirement 1: |
Based on the balance sheets
given for Just Dew It, calculate the following financial ratios for
the year 2008. |
(a) | Current ratio |
(Click to select)0.840.710.910.770.97 |
(b) | Quick ratio |
(Click to select)0.350.270.370.290.32 |
(c) | Cash ratio |
(Click to select)0.10.070.110.090.06 |
(d) | NWC to total assets ratio |
(Click to select)-3.81%-4.48%-4.12%-5.15%-4.84% |
(e) | Debt-equity ratio and equity multiplier |
(Click to select)0.79 and 1.790.73 and 1.650.91 and 2.060.67 and 1.520.85 and 1.93 |
(f) | Total debt ratio and Long-term debt ratio |
(Click to select)0.4 and 0.190.37 and 0.150.44 and 0.220.48 and 0.250.51 and 0.29 |
Requirement 2: |
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for the year 2009. |
(a) | Current ratio |
(Click to select)1.060.920.990.850.78 |
(b) | Quick ratio |
(Click to select)0.320.380.350.40.3 |
(c) | Cash ratio |
(Click to select)0.10.080.120.090.06 |
(d) | NWC to total assets ratio |
(Click to select)-2.01%-2.05%-2.09%-2.03%-2.07% |
(e) | Debt-equity ratio and equity multiplier |
(Click to select)0.54 and 1.390.59 and 1.510.69 and 1.770.64 and 1.640.74 and 1.89 |
(f) | Total debt ratio and Long-term debt ratio |
(Click to select)0.36 and 0.160.39 and 0.190.33 and 0.130.45 and 0.250.42 and 0.22 |