Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,460,000, with 75 percent of sales sold on credit. Cash

image text in transcribed

The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,460,000, with 75 percent of sales sold on credit. Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity $ 54,000 348,000 Accounts payable Accrued taxes $ 287,000 93,000 272,000 Bonds payable (long-term) 131,000 464,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 377,000 $ 1,138,000 Total liabilities and equity $ 1,138,000 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 b. Quick ratio times times c. Debt-to-total-assets ratio % d. Asset turnover e. Average collection period times days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th edition

1305103963, 978-1305548909, 1305548906, 978-1305103962

More Books

Students also viewed these Accounting questions

Question

What is the primary objective of the financial planning process?

Answered: 1 week ago

Question

What is the percent-of-sales method of financial forecasting?

Answered: 1 week ago