Question

The balance sheet for Stud Clothiers is shown next.

Sales for the year were $3,700,000, with 75 percent of sales sold on credit.

STUD CLOTHIERS Balance Sheet 20X1
Assets			Liabilities and Equity
Cash	$	70,000	Accounts payable	$	296,000
Accounts receivable		358,000	Accrued taxes		164,000
Inventory		245,000	Bonds payable (long-term)		139,000
Plant and equipment		423,000	Common stock		100,000
			Paid-in capital		150,000
			Retained earnings		247,000
Total assets	$	1,096,000	Total liabilities and equity	$	1,096,000

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

Answer 1