Bethesda Mining Company reports the following balance sheet information for 2015 and 2016. ...
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Finance
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
$
45,262
$
57,602
Accounts payable
$
190,922
$
198,611
Accounts receivable
61,281
81,639
Notes payable
86,020
137,588
Inventory
126,088
192,061
Total
$
276,942
$
336,199
Total
$
232,631
$
331,302
Long-term debt
$
239,000
$
175,750
Owners equity
Common stock and paid-in surplus
$
216,000
$
216,000
Fixed assets
Accumulated retained earnings
158,636
192,931
Net plant and equipment
$
657,947
$
589,578
Total
$
374,636
$
408,931
Total assets
$
890,578
$
920,880
Total liabilities and owners equity
$
890,578
$
920,880
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. Debtequity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Debtequity 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 & Explanation
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