Bethesda Mining Company reports the following balance sheet information for 2013

Question

Bethesda Mining Company reports the following balance sheet information for 2013 and 2014 Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 2014 Assets Liabilities and Owners' Equity Current liabilities s 21,396 $ 24,385 Accounts payable 214,414 $192,480 Cash 99,022 134,508 s 313,436 $ 326,988 S 271,700 285.300 Common stock and paid-in surplus $200,000 $200,000 51,552 121,807143,615 58,318 Notes payable Inventory Total 194,755S 226,318 Long-term debt Owners equity 32,481 171,358 332,481 $371,358 S 917,617 S 983,646 Total liabilities and owners equity $ 917,617 $983,646 Accumulated retained earnings Flxed assets Net plant and equipment Total assets $ 722.862 s 757 328 Total Required Based on the balance sheets given for B3ethesda Mining, calculate the following financial ratiofor ach (o) Curent ratio.(Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)) Current ratio 2013 2014 times times

Explanation / Answer

a)current ratio=current assets/current liabilties
2013:=194755/313436=0.62
2014:=226318/326988=0.69

b)Quick ratio=(current assets-inventory)/current liabilties
2013:=(194755-121807)/313436=0.23
2014:=(226318-143615)/326988=0.25

c)cash ratio=cash/current liabilties
2013:=21936/313436=0.07
2014:=24385/326988=0.07

d)Debt equity= debt/equity
2013:=(271700+313436)/332481=1.76
2014:=(326988+285300)/371358=1.65
equity multiplier=assets/equity
2013=(917617)/332481=2.76
2014:=(983646)/371358=2.65

e)Debt ratio=debt/assets
2013=(271700+313436)/917617=0.64
2014:=(326988+285300)/983646=0.62

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