Question

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 $ 60,538 $ 76,386 Accounts payable $ 187,922 $ 195,611 Accounts receivable 64,281 84,639 Notes payable 83,020 134,588 Inventory 119,029 184,177 Total $ 270,942 $ 330,199 Total $ 243,848 $ 345,202 Long-term debt $ 233,000 $ 169,750 Owners’ equity Common stock and paid-in surplus $ 222,000 $ 222,000 Fixed assets Accumulated retained earnings 176,453 213,131 Net plant and equipment $ 658,547 $ 589,878 Total $ 398,453 $ 435,131 Total assets $ 902,395 $ 935,080 Total liabilities and owners’ equity $ 902,395 $ 935,080 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 times 2016 times 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

Answer 1

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