Based on the balance sheets given for Just Dew It, calculate the following finan
ID: 2744199 • Letter: B
Question
Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year:
ns 13 ullbugh I7. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2015 20142015 Current assets Current liabilities Cash $11,135 13,407Accounts payable 45,166 48,185 Accounts receivable 28,419 30,915 Notes payable 17,773 1825 17,773 18,257 $ 62,939 $ 66,442 Inventory Total 51,163 56,295 $ 90,717 $100,617 Total Long-term debt4 Owners' equity $44,000 39,000 Common stock and paid-in surplus 50,000 $ 50,000 Retained earnings 260,234 302,735 $310,234 $352,735 Net plant and equipment $326,456 $357,560 Total Total liabilities and $417.173 $458,177 owners' equty $417,173 $458,177 Total assetsExplanation / Answer
1
Current ratio
= Current Ratio = Current Assets / Current Liabilities
=
2014
2015
Current Assets
90717
100617
Devised By:
Current Liabelity
62939
66442
Current Ratio
= Current Assets / Current Liabilities
1.44134797
1.51435839
2
cash ratio
=Cash +cash Equivalents / Current Liabilities
2014
2015
Current Assets
90717
100617
Less Inventory
-51163
-56295
Total Cash +Cash Eq
39554
44322
Devised By:
Current Liabelity
62939
66442
Cash Ratio
= Current Assets / Current Liabilities
0.62844977
0.66707805
3
NWC to total assets ratio
= Net working Capital / total Assets
=
2014
2015
Current Assets
90717
100617
Less:
Current Liabelity
62939
66442
NWC
27778
34175
Total Assets
417173
458177
NWC to total assets ratio
= Net working Capital / total Assets
0.06658628
0.07458908
4
Debt-equity ratio and equity
= Total Liability / total equity
=
2014
2015
Total Liability
106939
105442
total equity
310234
352735
Debt equity ratio=
Total Liability / total equity
0.34470432
0.29892696
5
Equity Multiplier
=Total Assets / Total Stock holder's Equity
=
2014
2015
Total Assets
417173
458177
total equity
310234
352735
Equity Multiplier
=Total Assets / Total Stock holder's Equity
1.34470432
1.29892696
6
Total Debt Raito
= Total Liability / total Assets
2014
2015
Total Assets
417173
458177
Total Liability
106939
105442
Total Debt Raito
= Total Liability / total Assets
0.25634209
0.23013377
7
long term ratio
= Long term Debt / Long term Debt+ equity
=
2014
2015
Lon termdebt Liability
44000
39000
Total Equity
310234
352735
long term ratio
= Long term Debt / Long term Debt+ equity
0.12421168
0.0995571
2014
2015
Current Assets
90717
100617
Devised By:
Current Liabelity
62939
66442
Current Ratio
= Current Assets / Current Liabilities
1.44134797
1.51435839
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