C Not secure l ezto.mheducation.com/hm.to BETHESDA MINING COMPANY Balance Sheets

Question

C Not secure l ezto.mheducation.com/hm.to BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 2015 2015 2016 Assets Liabilities and Owners' Equity Current assets Current liablities Notes payable 236 4505 336016Long-term debt Cash Accounts receivable s 50,434 S 63,944 Accounts payable S 189,522 197,611 62 281 82,639 189 433 36,588 237 030 173,750 3 214000 218000 382 6555417 45 Total Total Owners' equity Common stock and paid in srplus Accumulated relained eaenings Fixed assets 6-4 655 Net plant and equipment Total assats 658 141 89459T 589678 925694 Total liabilites and owners equity Total S 894,557925,694 Based on the balance sheets ghen for Bethesda Idining, calculate the following financia ratios tor each ear a. Current ratio (Do not round intermediate calculations and round your answers to 2 decimal places. e:g 32 163 Current ratio 2015 0 06 times times ns and round your answers to 2 decimal places: eg 32 16) b. Quick ratio (Do not round intermediate calculatio times times c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16. Cash ratico times times d. Debt-equity ratio and equity mutiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) ty multiplier times 2015 2016 times e. Total debl ratio (Do not round intermediate calculations and round your answers to 2 decimal places, 6.g- 32.16 Total debt ratio times ype here to search

Explanation / Answer

1. Current Ratio = Current Assets/Current Liabilities
Current ratio 2015 = 236450/274942 = 0.86
Current ratio 2016 = 336016/334199 = 1.01

2. Quick ratio = (Current Assets-Inventories)/Current Liabilities
Quick ratio 2015 = (236450-123735)/274942 =0.41
Quick ratio 2016 = (336016-189433)/334199 = 0.44

3. Cash Ratio = CAsh/Current laibbilities
Cash ratio 2015 = 50434/274942 =0.18
Cash ratio 2016 = 63944/334199 = 0.19

4. Debt To Equity ratio 2015 =Total Debt/Total equity = 511942/382655 = 1.34
Debt to Equity Ratio 2016 =507949/417745 = 1.22

Equity multiplier 2015 = Total Assets /Total Equity =  894597/382655 =2.34
Equity multiplier 2016 = Total Assets /Total Equity = 925694/417745 = 2.22

5. Total Debt Ratio = Total Debt /Total Equity
Total Debt Ratio 2015 =  511942/894597= 0.57
Total Debt Ratio 2016 = 507949/925694 = 0.55

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