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The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,570,000, with 75 percent of sales sold on credit. STUD CLOTHIERS
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,570,000, with 75 percent of sales sold on credit.
STUD CLOTHIERS Balance Sheet 20X1 | |||||
Assets | Liabilities and Equity | ||||
Cash | $ | 20,000 | Accounts payable | $ | 246,000 |
Accounts receivable | 350,000 | Accrued taxes | 108,000 | ||
Inventory | 260,000 | Bonds payable (long-term) | 126,000 | ||
Plant and equipment | 350,000 | Common stock | 100,000 | ||
Paid-in capital | 150,000 | ||||
Retained earnings | 250,000 | ||||
Total assets | $ | 980,000 | Total liabilities and equity | $ | 980,000 |
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 1.77 times
b.Quick ratio 1.04 times
c.Debt-to-total-assets ratio_______%
d Asset turnovertimes_______
e.Average collection period _______days
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