The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,760,000, with...

 

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The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,760,000, with 75 percent of sales sold on credit. Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20x1 Accounts payable Accrued taxes Assets Liabilities and Equity $ 58,000 $ 254,000 356,000 163,000 301,000 454,000 Bonds payable (long-term) 147,000 Common stock Paid-in capital 100,000 150,000 Retained earnings 355,000 $ 1,169,000 Total liabilities and equity $ 1,169,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. a. Current ratio 1,71 times b. Quick ratio 0.99 times c. Debt-to-total-assets ratio % d. Asset turnover 3.24 times e. Average collection period 45.44 days The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,760,000, with 75 percent of sales sold on credit. Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20x1 Accounts payable Accrued taxes Assets Liabilities and Equity $ 58,000 $ 254,000 356,000 163,000 301,000 454,000 Bonds payable (long-term) 147,000 Common stock Paid-in capital 100,000 150,000 Retained earnings 355,000 $ 1,169,000 Total liabilities and equity $ 1,169,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. a. Current ratio 1,71 times b. Quick ratio 0.99 times c. Debt-to-total-assets ratio % d. Asset turnover 3.24 times e. Average collection period 45.44 days

Answer rating: 100% (QA)

Answer To calculate the requested ratios we can use the following formulas a Current Ratio Current A... View the full answer