Preparing standardized financial statements prepare the

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Reference no: EM13380727

Preparing Standardized Financial Statements. Prepare the 2009 and 2010 common-size balance sheets for Bethesda Mining.

BETHESDA MINING COMPANY

  BALANCE Sheets as of December 31, 2009 and 2010

  2009       2010           

    Assets

Current assets

Cash        $23,774     $31,437

Accounts receivable     57, 281      77, 639

Inventory     135, 341          202, 574

Total    $216, 396        $311, 650

Fixed assets

Net plant and equipment   $657, 147    $589, 178

Total assets   $873, 543    $900, 828

   2009         2010

     Liabilities and Owners' Equity

Current liabilities

Accounts payable    $194, 922       $202, 611

Notes payable        90, 020         141, 588

Total         $284, 942     $344, 199

Long-term debt   247, 000        183, 750

Owner's equity

Common stock & paid $208, 000       $208,000

  in surplus

Accumulated retained    133, 601         164, 879

   earnings

Total         $341, 601        $372, 879

Total liabilities &    $873, 543        $ 900, 828

   owner's equity

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

a. Current

b. Quick ratio

c. Cash ratio

d. Debt-equity ratio and equity multiplier

e. Total debt ratio

Reference no: EM13380727

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