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