Question

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.

BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016
	2015				2016					2015				2016
Assets									Liabilities and Owners’ Equity
Current assets									Current liabilities
Cash	$	40,010			$	51,181			Accounts payable	$	191,922			$	199,611
Accounts receivable		60,281				80,639			Notes payable		87,020				138,588
Inventory		128,441				194,689			Total	$	278,942			$	338,199
Total	$	228,732			$	326,509			Long-term debt	$	241,000			$	177,750
									Owners’ equity
									Common stock and paid-in surplus	$	214,000			$	214,000
Fixed assets									Accumulated retained earnings		152,537				186,038
Net plant and equipment	$	657,747			$	589,478			Total	$	366,537			$	400,038
Total assets	$	886,479			$	915,987			Total liabilities and owners’ equity	$	886,479			$	915,987

Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year:

a. Current ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Current ratio
2015		times
2016		times

b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Quick ratio
2015		times
2016		times

c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Cash ratio
2015		times
2016		times

d. Debt−equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Debt−equity ratio				Equity multiplier
2015			times				times
2016			times				times

e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Total debt ratio
2015			times
2016

Answer 1