1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serjik [45]
3 years ago
9

Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.

Business
2 answers:
KIM [24]3 years ago
5 0

Answer:

a. Current ratio for 2017  -  1.14

   Current ratio for 2018  - 1.38

b. Quick ratio for 2017    - 0.30

   Quick ratio for 2018    - 0.41

c.  Cash ratio for 2017    - 0.09

   Cash ratio for 2018    - 0.11

d. NWC to Total Assets 2017 -   0.03

   NWC to Total Assets 2018 -   0.07

e. Debt equity ratio 2017 -   0,49 and equity multiplier 1,49

   Debt equity ratio 2018 -   0.36 and equity multiplier 1.36

f. Total Debt ratio 2017  0.33 and long term debt ratio  0.10

  Total Debt ratio 2018  0.27 and long term debt ratio  0.08

Explanation:

Current ratio is calculated by dividing the current assets  by the current liabilities

                                                           2017                                  2018

                                                             $                                        $

Current assets                                   84,000                            105.800

Current Liabilities                              73,440                               76.600

Current ratio

2017 - 84,000/ 73,440                      1.14                  

2018   105,800 / 76,600                                                              1.38    

Quick ratio is calculated by excluding the inventory balances from the current assets.

Current assets excl. inventory         22,220                               31,200

Current Liabilities                              73,440                               76.600

Quick Ratio

2017 22,220/73,440                            0.30

2018  31,200/76,600                                                                        0.41

Cash ratio is calculated by only considering cash and cash equivalents and dividing by the current liabilities

Cash balances                                   6,500                                 8.600

Current Liabilities                              73,440                               76.600

Cash ratio

2017 - 6,500/ 73,440                           0.09                

2018   8,600 / 76,600                                                                        0.11    

NWC to Total assets is calculated by dividing the net working capital to the total assets of the company

Current assets                                   84,000                            105.800

Current Liabilities                              <u>73,440  </u>                            <u> 76.600</u>

Net working capital                           10.560                                29,200    

Total assets                                     320,000                             400,000

NWC to Total assets Ratio

2017 - 10,560/320,000                          0.03

2018 - 29,200/400,000                                                                   0.07

Debt equity ratio is calculated by dividing the total liabilities of the company with its total equity

Current Liabilities                                73,440                                76,600

Long Term Liabilities                        <u>  32,000</u>                             <u>   30,000  </u>

Total debt of the company               105,440                               106,600

Common stock                                    40,000                                40,000

Retained Earnings                             <u>174,560 </u>                               <u>253,400</u>

Total Equity                                        214,560                                293,400

Debt Equity ratio

2017 - 105,440/214,560                        0,49

2018 - 106,600/293,400                                                                     0.36

Equity multiplier is calculated by dividing the total assets over total equity

Total assets                                        320,000                                 400,000

Total Equity                                         214,560                                  293,400

Equity multiplier

2017 - 320,000/214,560                          1.49

2018 - 400,000/293,400                                                                        1.36

Total debt ratio is calculated by dividing the total debt with the total assets. The long term debt ratio divides the long term debt with the total assets

Total debt of the company               105,440                                  106,600

Total assets                                       320,000                                 400,000

The total debt ratio

2017 - 105,440/320,000                         0.33  

2018 - 106,600/400,000                                                                         0.27

Long Term Liabilities                        <u> </u> 32,000                                    30,000

Total Equity                                         214,560                                  293,400

2017 - 32,000/ 214,560                             0.10

2018 - 30,000/ 293,400                                                                          0.08

IceJOKER [234]3 years ago
4 0

Answer:

Cash : (2017)= 6560 ; (2018) = 8600

Account Payable: (2017) = 51840 ; (2018) = 53000

Account receivable: (2017) = 16160 ; (2018) = 22600

Notes payable: (2017) = 21600 ; (2018) = 23600

Inventory : (2017) = 61280 ; (2018) = 74600

Long-term debt: (2017)= 32000 ; (2018) = 30000

Owners equity : (2017)= 40000 ; (2018) = 40000

Retained earning: (2017) = 174560 ; (2018) = 253400

Net Plant & equipment: (2017) = 236000 ; (2018) = 294200

Total Assets: (2017) = 320000 ; (2018) = 400000

Total equity and liabilities: (2017) = 320000 ; (2018) = 400000

Current assets = Cash + Account receivable + Inventory

Current liabilities = Accounts payable +Notes payable

As we know that : Current ratio = Current assets / current liabilities.

       (2017) = (6560+16160+61280) / (51840+21600)=84000/73440=1.14

      (2018) =(8600+22600+74600)/ (53000+23600)=105800/76600=1.38

As we know that : Quick ratio = (Cash + securities + Account receivable)/ Current liabilities.

             (2017)=(6560+16160)/73440=22720/73440= 0.30

            (2018)= (8600+22600)/76600=31200/76600=0.40

As we know that Cash ratio = cash &cash equivalent / current liabilities

           (2017) =  6560 / 73440 = 0.089

           (2018) = 8600 / 76600 =0.112

As we know that NWC to total asset ratio = net working capital / Total assets.

Net working capital = current assets - current liabilities.

       (2017) NWC=84000-73440=10560

       (2018) NWC = 105800-76600=29200

NWC ratio:

        (2017) =   10560 /320000= 0.033

        (2018)= 29200  /400000= 0.073

As we know that debt to equity ratio = Total liabilities / Total shareholder equity.

Total liabilities (2017)= 51840 + 21600 + 32000 = 105440

Total liabilities (2018)= 53000 + 23600 + 30000 = 106600

  Total equity  (2017) =40000+174560= 214560

 Total equity (2018) = 40000+253400 = 293400

   ratio (2017) = 105440/214560=0.49

  ratio(2018) =106600/293400=0.36

As we know that total debts ratio = Total debt / Total assets

Total debt (2017) = 51840+21600+32000 =105440

Total debt (2018) = 53000+23600+30000=106600

 ratio (2017) =105440/320000=0.32

 ratio (2018) =106600/400000=0.26

As we know that long-term debt ratio = long-term debt / total assets

       (2017) = 32000/320000=0.1

       (2018) =30000/400000=0.075

You might be interested in
Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $180,000 on January 1, 20
Nitella [24]

Answer:

bonds' face value $180,000

coupon rate 8%, semiannual = 4%

maturity 3 years x 2 = 6 periods

market interest rate = 10% or 5% semiannual

the journal entry to record the issuance of the bonds:

January 1, 2017, bonds issued at a discount

Dr Cash 170,862

Dr Discount on bonds payable 9,138

    Cr Bonds payable 180,000

the amortization of the bond discount should be $9,138 / 6 = $1,523 on every coupon payment.

Journal entry to record payment of first coupon:

June 30, 2017, first coupon payment

Dr Interest expense 8,723

    Cr Cash 7,200

    Cr Discount on bonds payable 1,523

6 0
3 years ago
Ace Construction Company contracts to build a retirement community on land owned by Smith. Jones, an adjoining landowner, expect
Arada [10]

Answer:

d.) Jones is an incidental beneficiary and has no right to sue for Ace Construction's breach of the contract.

Explanation:

Jones was not a direct party to the contract, in fact, any profit which he was supposed to receive was incidental in nature and thus he cannot sue Ace Construction's breach of the contract.

4 0
3 years ago
Cost assignment ________. Group of answer choices includes future and arbitrary costs encompasses allocating indirect costs to a
Vika [28.1K]

Answer:

encompasses allocating indirect costs to a cost object

Explanation:

Cost assignment -

It refers to the distribution of the cost in various objects and activities which initiate the proper bifurcation of the costs , is referred to as cost assignment .

The method is used in the activity - based costing .

It is also known as cost allocation .

All the direct and indirect cost are allotted with the help of cost assignment .

Hence , from the given information of the question ,

The correct answer is -

encompasses allocating indirect costs to a cost object .

4 0
3 years ago
A company claims that 10% of the users of a certain allergy drug experience drowsiness. In clinical studies of this allergy drug
kifflom [539]

Answer:

Answer is D

Explanation:

d. Construct a 95% confidence interval estimate of the population proportion of the users of this allergy drug who experience drowsiness.

5 0
2 years ago
What regulations or laws exist surrounding manufacturing, shipping, and use of plastic in a factory?
PIT_PIT [208]

Regulations exist according to the Green New Deal signed in the UN and applied rather loosely inside the country.

Explanation:

The green new deal is basically responsible for the laws that are being written over the use of plastic and its manufacture and shipping in the country due to the volatility of plastic products in the environmental sphere and how terribly they have been responsible for global warming.

The laws according to the Green New Deals regulate the making of plastic in function to its consumption, effect to the environment and the decay rate.

5 0
3 years ago
Other questions:
  • Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. A week later, Floyd assig
    9·1 answer
  • In the as/ad model, an expansionary monetary policy has the greatest effect on the price level when it
    15·1 answer
  • What can communicators do to ensure facts, rather than vague impressions, are shared?
    7·1 answer
  • Name the currency that is used by 19 member states and 330 million people, though some politicians and economists are calling fo
    12·1 answer
  • You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i
    5·1 answer
  • Under the family and medical leave act, an employee can take up to 12 weeks of paid leave each year for certain personal and fam
    14·1 answer
  • The entry to record the amortization of a patent would include a debit to __________ and a credit to __________. Amortization Ex
    8·1 answer
  • ABC Manufacturing Inc. ends the month with two jobs still in progress. Job 5 has $10,000 of materials, $2,000 of direct labor an
    11·1 answer
  • E-businesses use the physical rather than the virtual value chain
    13·1 answer
  • The amount of reserves that a commercial bank is required to hold is equal to?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!