Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit. REVOLUTION CLOTHIERS
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit.
REVOLUTION CLOTHIERS | |||
Balance Sheet 20X1 | |||
Assets | Liabilities and Equity | ||
---|---|---|---|
Cash | $ 24,000 | Accounts payable | $ 279,000 |
Accounts receivable | 283,000 | Accrued taxes | 107,000 |
Inventory | 266,000 | Bonds payable (long-term) | 130,000 |
Plant and equipment | 450,000 | Common stock | 100,000 |
Paid-in capital | 150,000 | ||
Retained earnings | 257,000 | ||
Total assets | $ 1,023,000 | Total liabilities and equity | $ 1,023,000 |
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 ratiotimes
b. Quick ratiotimes
c. Debt-to-total-assets ratio%
d. Asset turnovertimese.
Average collection perioddays
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started