he balance sheet for Bryan Corporation is given below. Sales for the year were $3,100,000, with 75
Question:
he balance sheet for Bryan Corporation is given below. Sales for the year were $3,100,000, with 75 percent of sales sold on credit.
BRYAN CORPORATION
Balance Sheet Dec. 31, 20XXAssetsLiabilities and EquityCash$65,000Accounts payable$250,000Accounts receivable300,000Accrued taxes60,000Inventory380,000Bonds payable (long term)210,000Plant and equipment440,000Common stock340,000Retained earnings325,000Total assets$1,185,000Total liabilities and equity$1,185,000
Compute the following ratios:(Use 365days in a year.Do not round intermediate calculation. Round the final answers to2 decimal places.)
a.Current ratio2.40
2.40 Correct
xb.Quick ratio1.18
1.18 Correct
xc.Debt-to-total-assets ratio44.00
44.00 Incorrect
%d.Asset turnover2.61
2.61 Incorrect
xe.Average collection period47.09
47.09 Incorrect
days