Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,200,000, with 75 percent of sales sold on credit. STUD CLOTHIERS
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,200,000, with 75 percent of sales sold on credit.
STUD CLOTHIERS Balance Sheet 20X1 | |||||
Assets | Liabilities and Equity | ||||
Cash | $ | 25,000 | Accounts payable | $ | 247,000 |
Accounts receivable | 351,000 | Accrued taxes | 97,000 | ||
Inventory | 251,000 | Bonds payable (long-term) | 136,000 | ||
Plant and equipment | 423,000 | Common stock | 100,000 | ||
Paid-in capital | 150,000 | ||||
Retained earnings | 320,000 | ||||
Total assets | $ | 1,050,000 | Total liabilities and equity | $ | 1,050,000 |
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 | times | |
b. | Quick ratio | times | |
c. | Debt-to-total-assets ratio | % | |
d | Asset turnover | times | |
e. | Average collection period | days |
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