Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. STUD CLOTHIERS

image text in transcribed

The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. STUD CLOTHIERS Balance Sheet 20x1 Assets Liabilities and Equity $ 38,000 Accounts payable Cash Accounts receivable Inventory Plant and equipment $ 262,000 148,000 178,000 100,000 150,000 240,000 $ 1,078,000 292,000 Accrued taxes 248,000 Bonds payable (long-term) 500,000 Common stock Paid-in capital Retained earnings $ 1,078,000 Total assets Total liabilities and equity 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.) 1.41 times a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d Asset turmover e. Average collection period times 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

Risk Sensitive Investment Management

Authors: Mark H A Davis, Sébastien Lleo

1st Edition

9814578037, 978-9814578035

More Books

Students also viewed these Finance questions