Homework Answers
Answer a.
Equity Multiplier = 1 + Debt-Equity Ratio
Equity Multiplier = 1 + 0.57
Equity Multiplier = 1.57
Answer b.
Return on Equity = Return on Assets * Equity Multiplier
Return on Equity = 7.90% * 1.57
Return on Equity = 12.40%
Answer c.
Return on Equity = Net Income / Total Equity
12.40% = Net Income / $620,000
Net Income = $76,880
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SME Company has a debt-equity ratio of 57. Return on assets is 7.9 percent, and total...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017 2018 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 14,105 Accounts payable $ 46,382 32,815 Notes payable 18,246 57,204 $ 12,157 29,382 54.632 $ 49,276 19,784 Total $ 104,124 $ 64,628 Total $ 96,171 $ 69,060 Long-term debt $ 49,000 $ 45,000 Owners' equity Common stock and paid-in...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018 Assets 2017...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018 Assets 2017 2018 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 14,105 Accounts payable $ 46.382 32,815 Notes payable 18,246 57,204 $ 12.157 29,382 54,632 $ 49.276 19,784 Total $ 96,171 $ 104,124 Total $ 64,628 $ 69,060 Long-term debt $ 49,000 $ 45,000 Owners' equity Common stock and paid-in...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners’ Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 12,157 $ 14,105 Accounts payable $ 46,382 $ 49,276 Accounts receivable 29,382 32,815 Notes payable 18,246 19,784 Inventory 54,632 57,204 Total $ 96,171 $ 104,124 Total $ 64,628 $ 69,060 Long-term debt $ 49,000 $ 45,000 Owners’ equity Common stock and paid-in...
С https 10 Just Dew It Corporation reports the following balance sheet information for 2017 and...
С https 10 Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. 10 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 12,157 14,105 $ 46,382 49276 9,784 Accounts payable 29382 32815 Notes payable 54,632 8,246 57,204 Total 96,171 104,124 Total $64628 69060 $ 49,000 45,000 Common stock and paid-n s 50000 s 50000 299784 315,894 $349,784 $365,894 and owners$463,412 $479,954 Long-term debt Owners equity Retained earnings Net...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Based on...
Just Dew It Corporation reports the following balance sheet
information for 2017 and 2018.
Based on the balance sheets given for Just Dew It:
a.
Calculate the current ratio for each year. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
Calculate the quick ratio for each year. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
c.
Calculate the cash ratio for each year. (Do not...
Preparing Standardized Financial Statements [LO1] Prepare the 2018 combined common-size, common-base year balance sheet for Just...
Preparing Standardized Financial Statements
[LO1] Prepare the 2018 combined common-size,
common-base year balance sheet for Just Dew It.
Sources and Uses of Cash [LO1]
For each account on this company’s balance sheet, show the change
in the account during 2018 and note whether this change was a
source or use of cash. Do your numbers add up and make sense?
Explain your answer for total assets as compared to your answer for
total liabilities and owners’ equity.
JUST DEW IT...
1. Sources and Uses of Cash [LO1] For each account on this company's balance sheet, show...
1. Sources and Uses of Cash [LO1] For each account on this company's balance sheet, show the change in the account during 2018 and note whether this change was a source or use of cash. Do your numbers add up and make sense? Explain your answer for total assets as compared to your answer for total liabilities and owners' equity. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets...
SME Company has a debt-equity ratio of .60. Return on assets is 7.9 percent, and total...
SME Company has a debt-equity ratio of .60. Return on assets is 7.9 percent, and total equity is $510,000. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) What is the net income? (Do not round intermediate calculations and round your answer to the...
SME Company has a debt-equity ratio of .70. Return on assets Is 7 percent, and total...
SME Company has a debt-equity ratio of .70. Return on assets Is 7 percent, and total equity is $481,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the net income? (Do not round intermediate calculations and round your answer to...
Synovec Company has a debt-equity ratio of .85. Return on assets is 7.3 percent, and total...
Synovec Company has a debt-equity ratio of .85. Return on assets is 7.3 percent, and total equity is $910,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. Assets 2017 2018 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 14,105 Accounts payable $ 46,382 32,815 Notes payable 18,246 57,204 $ 12,157 29,382 54.632 $ 49,276 19,784 Total $ 104,124 $ 64,628 Total $ 96,171 $ 69,060 Long-term debt $ 49,000 $ 45,000 Owners' equity Common stock and paid-in...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018 Assets 2017 2018 Current assets Cash Accounts receivable Inventory JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Liabilities and Owners' Equity 2018 2017 Current liabilities $ 14,105 Accounts payable $ 46.382 32,815 Notes payable 18,246 57,204 $ 12.157 29,382 54,632 $ 49.276 19,784 Total $ 96,171 $ 104,124 Total $ 64,628 $ 69,060 Long-term debt $ 49,000 $ 45,000 Owners' equity Common stock and paid-in...
С https 10 Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. 10 2017 and 2018 Balance Sheets Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 12,157 14,105 $ 46,382 49276 9,784 Accounts payable 29382 32815 Notes payable 54,632 8,246 57,204 Total 96,171 104,124 Total $64628 69060 $ 49,000 45,000 Common stock and paid-n s 50000 s 50000 299784 315,894 $349,784 $365,894 and owners$463,412 $479,954 Long-term debt Owners equity Retained earnings Net...
Just Dew It Corporation reports the following balance sheet
information for 2017 and 2018.
Based on the balance sheets given for Just Dew It:
a.
Calculate the current ratio for each year. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
Calculate the quick ratio for each year. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
c.
Calculate the cash ratio for each year. (Do not...
Preparing Standardized Financial Statements
[LO1] Prepare the 2018 combined common-size,
common-base year balance sheet for Just Dew It.
Sources and Uses of Cash [LO1]
For each account on this company’s balance sheet, show the change
in the account during 2018 and note whether this change was a
source or use of cash. Do your numbers add up and make sense?
Explain your answer for total assets as compared to your answer for
total liabilities and owners’ equity.
JUST DEW IT...
1. Sources and Uses of Cash [LO1] For each account on this company's balance sheet, show the change in the account during 2018 and note whether this change was a source or use of cash. Do your numbers add up and make sense? Explain your answer for total assets as compared to your answer for total liabilities and owners' equity. JUST DEW IT CORPORATION 2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets...
SME Company has a debt-equity ratio of .60. Return on assets is 7.9 percent, and total equity is $510,000. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) What is the net income? (Do not round intermediate calculations and round your answer to the...
SME Company has a debt-equity ratio of .70. Return on assets Is 7 percent, and total equity is $481,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the net income? (Do not round intermediate calculations and round your answer to...
Synovec Company has a debt-equity ratio of .85. Return on assets is 7.3 percent, and total equity is $910,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your...
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