Reference no: EM132636751

Question - Just Dew It Corporation reports the following balance sheet information for 2014 and 2015.

JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets

Assets Liabilities and Owners' Equity 2014 2015 2014 2015

Current assets Current liabilities Cash $14,200 $18,260

Accounts payable $58,400 $61,820

Accounts receivable 19,000 23,100

Notes payable 23,400 25,080

Inventory 51,800 54,780

Total $85,000 $96,140 Total $81,800 $86,900

Long-term debt $32,000 $22,000

Owners' equity Common stock and paid-in surplus $44,000 $44,000

Retained earnings 242,200 287,100

Net plant and equipment $315,000 $343,860

Total $286,200 $331,100

Total assets $400,000 $440,000

Total liabilities and owners' equity $400,000 $440,000

Based on the balance sheets given for Just Dew It:

Required -

a. Calculate the current ratio for each year.

b. Calculate the quick ratio for each year.

c. Calculate the cash ratio for each year.

d. Calculate the NWC to total assets ratio for each year.

e. Calculate the debt-equity ratio and equity multiplier for each year.

f. Calculate the total debt ratio and long-term debt ratio for each year.