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	$	8,850			$	14,200			Accounts payable	$	37,500			$	46,600
Accounts receivable		15,750				23,000			Notes payable		11,850				19,400
Inventory		34,650				52,200
Total	$	59,250			$	89,400			Total	$	49,350			$	66,000
									Long-term debt	$	27,000			$	24,000
									Owners’ equity
									Common stock and paid-in surplus	$	45,000			$	45,000
									Retained earnings		178,650				265,000
Net plant and equipment	$	240,750			$	310,600			Total	$	223,650			$	310,000
Total assets	$	300,000			$	400,000			Total liabilities and owners’ equity	$	300,000			$	400,000

e.	Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
f.	Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ACCOUNTS latest - Microsoft Excel (Product Activation Failed) View Add-Ins Data Review - 2x = = = V General File Home Insert Page Layout Formulas % Cut Calibri 11 A A Ea Copy Paste Format Painter B I U B- A Clipboard Font 1542 f Wrap Text Merge Merge & Center - Center SF $ -% % 4:0 .00 . Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Alignment Number Cells H 526 527 JUST DEW IT 528 529 530 DEBT-EQUITY RATIO = TOTAL DEBT/TOTAL EQUITY TOTAL ASSETS LESS: TOTAL EQUITY TOTAL DEBT 0.34 300000 223650 76350 0.29 400000 310000 90000 531 532 533 534 535 EQUITY MULTIPLIER = 1 + DEBT-EQUITY RATIO 1.34 1.29 536 TOTAL DEBT RATIO = (TOTAL ASSETS - TOTAL EQUITY)/TOTAL ASSETS 0.25 0.23 537 538 539 LONG TERM DEBT RATIO = LONG TERM DEBT/(LONG TERM DEBT + EQUITY) LONG TERM DEBT TOTAL EQUITY 0.11 27000 223650 0.07 24000 310000 540 541 542 543 ► Rea FIFO budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont CASH BUDGET ferences DIFF ANALYSIS ovel < BOU 140% 0 SPOR 9 * ENG 01-11-2019