Jim Shorts Company makes clothing for schools. Sales in 20X1 were $4,940,000. Assets were as follows:

Cash	$	153,000
Accounts receivable		831,000
Inventory		458,000
Net plant and equipment		590,000
Total assets	$	2,032,000

a. Compute the following: (Round your answers to 2 decimal places.) b. In 20X2, sales increased to $5,530,000 and the assets for that year were as follows:

Cash	$	153,000
Accounts receivable		952,000
Inventory		1,048,000
Net plant and equipment		590,000
Total assets	$	2,743,000

Compute the following: (Round your answers to 2 decimal places.)

c. Is there an improvement or a decline in the total asset turnover?

Decline OR Improvement

PART 2:

The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,310,000, with 75 percent of sales sold on credit.

STUD CLOTHIERS Balance Sheet 20X1
Assets			Liabilities and Equity
Cash	$	21,000	Accounts payable	$	282,000
Accounts receivable		347,000	Accrued taxes		131,000
Inventory		318,000	Bonds payable (long-term)		186,000
Plant and equipment		417,000	Common stock		100,000
			Paid-in capital		150,000
			Retained earnings		254,000
Total assets	$	1,103,000	Total liabilities and equity	$	1,103,000

Compute the following ratios: (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

b.quick ratio

c.debt to total assets ratio

d.asset turnover

e.average collection period