Compute the following ratios: Note: 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 b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period times times % times days
Compute the following ratios: Note: 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 b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period times times % times days
Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter15: Financial Statement Analysis
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Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit.
REVOLUTION CLOTHIERS
Balance Sheet 20X1
Assets
Cash
Accounts receivable
Inventory
Plant and equipment
Total assets
$ 24,000
283,000
266,000
450,000
a. Current ratio
b. Quick ratio
c. Debt-to-total-assets ratio
d. Asset turnover
e. Average collection period
$ 1,023,000
Accounts payable
Accrued taxes
Liabilities and Equity
times
times
%
times
days
Bonds payable (long-term)
Common stock
Paid-in capital
Retained earnings
Total liabilities and equity
Compute the following ratios:
Note: 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.
$ 279,000
107,000
130,000
100,000
150,000
257,000
$ 1,023,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70cd1d2f-e044-431b-bbed-147c5be3c27f%2F6d6353da-7789-41b2-9796-5ff36485572d%2Fsejqj3n_processed.png&w=3840&q=75)
Transcribed Image Text:The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,190,000, with 75 percent of sales sold on credit.
REVOLUTION CLOTHIERS
Balance Sheet 20X1
Assets
Cash
Accounts receivable
Inventory
Plant and equipment
Total assets
$ 24,000
283,000
266,000
450,000
a. Current ratio
b. Quick ratio
c. Debt-to-total-assets ratio
d. Asset turnover
e. Average collection period
$ 1,023,000
Accounts payable
Accrued taxes
Liabilities and Equity
times
times
%
times
days
Bonds payable (long-term)
Common stock
Paid-in capital
Retained earnings
Total liabilities and equity
Compute the following ratios:
Note: 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.
$ 279,000
107,000
130,000
100,000
150,000
257,000
$ 1,023,000
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