Calculate the current ratio for each year. (Round your answers to 2 decimal plac

Question

Calculate the current ratio for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate the quick ratio for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate the cash ratio for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate the NWC to total assets ratio for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate the debt–equity ratio and equity multiplier for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate the total debt ratio and long-term debt ratio for each year. (Round your answers to 2 decimal places. (e.g., 32.16))

Explanation / Answer

a. 2011 2012   Current ratio times times Current ratio = current assets/current liabilities 97000/69000 122250/104250 1.41 1.17 b. 2011 2012   Quick ratio times times Quick ratio = (current assets – inventories) / current liabilities (97000-78200)/69000 (122250-95250)/104250 0.27 0.26 c. 2011 2012   Cash ratio times times cash ratio = (cash + cash equivalents) /Current liabilties 6000/69000 12750/104250 0.087 0.122 d. 2011 2012   NWC to Total assets ratio % % (97000-69000)/400000*100 (122250-104250)/500000*100 7 3.6 e. 2011 2012   Debt-equity ratio times times                   Debt equity ratio = Total liabilities/total equity (69000+48000)/(50000+233000) (104250+45000)/(50000+300750) No.of times 0.413427562 0.42551675 ie. 0.41 0.43 Equity multiplier Total assets /Total stockholders equity 400000/283000 500000/350750 1.413427562 1.42551675 ie. 1.41 1.43 f. 2011 2012   Total debt ratio times times Total debt ratio = Total debt/Total assets (69000+48000)/400000 (104250+45000)/500000 0.2925 0.2985 ie. 0.29 0.3   Long-term debt ratio times 2011 2012   Long-term debt ratio times times   Long-term debt ratio = LT debt /total assets 48000/400000 45000/500000 0.12 0.09

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