Question

#15 and 16, please show work!

CHAPTER 3 Working with Financial Statem Working with Financial Statements LO.3 ng the following ratios are constant, what is the 14. Sustainable Growth Assuming the following ra sustainable growth rate? Total asset turnover =2.95 Profit margin=5.9% Equity multiplier =1.31 Payout ratio = 40% Bethesda Mining Company reports the following balance sheet 2018 and 2019. Use this information to work Problems 15 ving balance sheet information for BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2019 Assets Current assets Cash Accounts receivable Inventory Total $ 21,182 51,036 120.589 $ 192,807 $ 24,141 59,935 142,718 $226,794 2018 Liabilities and Owners' Equity Current liabilities Accounts payable $180,108 Notes payable 83,179 Total $263,287 Long-term debt $305,000 Owners' equity Common stock and paid-in surplus $165,000 Accumulated retained earnings 235,445 Total $400,445 Total liabilities and owners' equity $968.732 $190,767 98,175 $288.942 $340,000 Fixed assets Net plant and equipment Total assets $775,925 $968,732 $178,000 283,578 $461,578 $1,090,520 $863,726 $1.090.520 101 LO 2 15. Preparing Standardized Financial Statements Prepare the 2018 and 2019 common-size balance sheets for Bethesda Mining. 16. Calculating Financial Ratios Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year: a. Current ratio b. Quick ratio c. Cash ratio d. Debt-equity ratio and equity multiplier e. Total debt ratio

Answer 1

mining is a folivwsi. e ol8 ) 2018(7) 2019 (3) 2019(/) Soure of feund common stodk 165000 23.39 178000 22.21 Reserve and scpley A cCumulated 235,45 33.38 283578 35.38 हजापच्छ त्थजाययग्ी Total oumed fand400445 56.76 461,578 57.58 cang term debt 305000 43.24 340,000 42.42 Tutel capitar empayed 705240 100% 801,578 l00% कीममोरteh loyl Fived Assek Plant and Eguipmat 775925 ||o 863,726 107.75 Worcing cantol current ASsets cash ACCOUNT Receivable, 5l036 Inventery 24,141 59935 14278 21 182 120589 Tutalcurent Asek 192807 27.33 less currentt पंदb 49 AcCOUt payable 180108 Notes payable83179 226794 28.29 190767 98175 Toldamant liabytie 263, 287) 37.32 288,942,36.05 waking capital E) 70489(-)10%062,148 -)775 Potal capital emplo yed 705445100% 801578 Too%

(10 felloung Kathos ae calculated: C cunant Ratioz Cyrrent ASsets cYrrent Liabi litier 2019 20|४ 4192807 $263,287 current Ratio 9226794 $ 288942 0.73: 1 0.78:1. ) Quicic kato- Quick Assts QuiCk Liabi lites 2019 2018 $192,807-120589 $226794-142718 $263287 Suick Ratio $288, 942 0.29:4 0.27:1 Deeto Lang term debt ouneos Equity 2018 O pebt Egity Raboz 2019 (1) Pebt Eguity Rabio 8305,00 3400 445 0.76 $340,000 $461578 0.74 - total Asseks stodcholderis, Equity 2018 3968.732 Equity maltielier 2019 $1090,520 461578 Eguity mut tip lier $400, 445 - 2.42 = 2.36.

O Cash Ratio = cash carrent LiablT y 2018 $21182 2019 $24,141 cash Ratio= $263,287 $ 288,942 6.08 0.08 Total debt patio= tota debt total ASses 2019 2018 $305,000 3968,732$1090,520 O.31 Total debt Ratio $340,000