Please do your own work, don't copy from the internet Overall ratio analysis The balance sheet for Stud Clothiers is shown next. Sales for the year were $2,400,000, with 90 percent of sales sold on credit. STUD CLOTHIERSBalance Sheet 20X1AssetsLiabilities and EquityCash……………………$ 60,000Accounts payable……………..$ 220,000Accounts receivable…...240,000Accrued taxes…………………30,000Inventory………………350,000Bonds payable(long-term)……………………150,000Plant and equipment…... 410,000Common stock………………..80,000 Paid-in capital…………………200,000 Retained earnings…………….. 380,000Total assets………...$1,060,000Total liabilities and equity…$1,060,000Compute the following ratios:a. Current ratio.b. Quick ratio.Debt-to-total-assets ratio.Asset turnover.Average collection period.

Currrent ratio = Current assets / Current liaiblities Quick ratio = Quick assets / Current…

Answered: Overall ratio analysis The balance…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4SEA: FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement,...

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Please do your own work, don't copy from the internet

Overall ratio analysis The balance sheet for Stud Clothiers is shown next. Sales for the year were $2,400,000, with 90 percent of sales sold on credit.

STUD CLOTHIERS
Balance Sheet 20X1
Assets	Liabilities and Equity
Cash……………………	$ 60,000	Accounts payable……………..	$ 220,000
Accounts receivable…...	240,000	Accrued taxes…………………	30,000
Inventory………………	350,000	Bonds payable (long-term)……………………	150,000
Plant and equipment…...	410,000	Common stock………………..	80,000
		Paid-in capital…………………	200,000
		Retained earnings……………..	380,000
Total assets………...	$1,060,000	Total liabilities and equity…	$1,060,000

Compute the following ratios:

a. Current ratio.
b. Quick ratio.
Debt-to-total-assets ratio.
Asset turnover.
Average collection period.

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