Just Dew It n reports the following balance sheet information for 2014 and 2015.

Question

Just Dew It n reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets Current iabilities Cash Accounts receivable S 6,560 16,160 61,280 $ 8,600 22,600 74,600 Accounts payable Notes payable $ 51,840 21,600 53,000 23,600 76,600 30,000 S 40,000 Total S 73,440 S 32,000 40,000 S 84,000 S105,800 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings 174,560 $214,580 $320,000 253,400 $293,400 400,000 Net plant and equipment $236,0 00 $294,200 Total assets $320,000 400,000 Total liabilities and owners' equity Based on the balance sheets given for Just Dew It a. Calculate the current ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Current ratio times times b. Calculate the quick ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Quick ratio times times c. Calculate the cash ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Cash ratio times d. Calculate the NWC to total assets ratio for each year. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 2014 2015 NWC ratio e. Calculate the debt-equity ratio and equity multiplier for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Debt-equity ratio Equity multiplier times times f. Calculate the total debt ratio and long-term debt ratio for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) 2014 2015 Total debt ratio times Long-term debt ratio

Explanation / Answer

2014 2015 a) Current ratio Current assets/Current liabilities                                       1.14                                          1.38 84000/73440 105800/76600 b) Quick ratio Quick assets/Current liabilities                                       0.31                                          0.41 (84000-61280)/73440 (105800-74600)/76600 c) Cash ratio Cash/Current liabilities                                       0.09                                          0.11 6560/73440 8600/76600 d) NWC Ratio Net working capital/Total assets 3.30% 7.30% (84000-73440)/320000 (105800-76600)/400000

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