20. The balance sheet for Stud Clothiers is shown below. Sales for the year were

$2,400,000, with 90 percent of sales sold on credit.

Compute the following ratios:

a. Current ratio.

b. Quick ratio.

c. Debt-to-total-assets ratio.

d. Asset turnover.

e. Average collection period.

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STUD CLOTHIERS Balance Sheet 200X Assets Liabilities and Equity Cashi $ 60,000 Accounts payable $ 220,000 Inventory... Accounts receivable Plant and equipment 240,000 Accrued taxes.. 30,000 350,000 Bonds payable (long-term) 150,000 410,000 Common stock 80,000 Paid-in capital. 200,000 Retained earnings. 380,000 Total assets. $1,060,000 Total liabilities and equity. $1,060,000