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