## Just Dew It Balance Sheet

Total

\$230,543

\$288,501

Total assets

\$388,363

\$429,999

Total liabilities and owners' equity

\$388,363

\$429,999

Prepare the 2001 and 2002 Prepare the 2002 common-

13. Preparing Standardized Financial Statements common-size balance sheets for Just Dew It.

14. Preparing Standardized Financial Statements base year balance sheet for Just Dew It.

15. Preparing Standardized Financial Statements Prepare the 2002 combined common-size, common-base year balance sheet for Just Dew It.

16. Sources and Uses of Cash For each account on this company's balance sheet, show the change in the account during 2002 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.

17. Calculating Financial Ratios Based on the balance sheets given for Just Dew It, calculate the following financial ratios for each year:

a. Current ratio b. Quick ratio c. Cash ratio d. NWC to total assets ratio e. Debt-equity ratio and equity multiplier f. Total debt ratio and long-term debt ratio

18. Using the Du Pont Identity Y3K, Inc., has sales of \$2,300, total assets of \$1,020, and a debt-equity ratio of 1.00. If its return on equity is 18 percent, what is its net income?

19. Sources and Uses of Cash If accounts payable on the balance sheet decreases by \$10,000 from the beginning of the year to the end of the year, is this a source or a use of cash? Explain your answer.

Intermediate

(Questions 18-30)

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

II. Financial Statements and Long-Term Financial Planning

3. Working with Financial Statements

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