The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,420,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 28x1 $ 27,000 291,000 308,000 393,000 $ 1,019,000 Liabilities and Equity Accounts payable Accrued taxes Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity $ 293,000 125,000 201,000 100,000 150,000 150,000 $ 1,019,000
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,420,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 28x1 $ 27,000 291,000 308,000 393,000 $ 1,019,000 Liabilities and Equity Accounts payable Accrued taxes Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity $ 293,000 125,000 201,000 100,000 150,000 150,000 $ 1,019,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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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![Problem 3-22 (Algo) Overall ratio analysis [LO3-2]
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,420,000, with 75 percent of sales sold
on credit.
Assets
Cash
Accounts receivable
Inventory
Plant and equipment
Total asset
REVOLUTION CLOTHIERS
Balance Sheet 20x1
a. Current ratio
b. Quick ratio
c. Debt-to-total-assets ratio
d. Asset turnover
e. Average collection period
$ 27,000
291,000
308,000
393,000
$ 1,019,000
Accounts payable
Accrued taxes
Liabilities and Equity
Bonds payable (long-term)
Common stock
Paid-in capital
Retained earnings
Total liabilities and
times
times
%6
times
days
uity
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.
$ 293,000
125,000
201,000
100,000
150,000
150,000
$ 1,019,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff53822c8-9338-4e5a-bc67-da7986b643c4%2F8664a8a5-1970-4068-9dae-f7a10e91015f%2Ftida40m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3-22 (Algo) Overall ratio analysis [LO3-2]
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,420,000, with 75 percent of sales sold
on credit.
Assets
Cash
Accounts receivable
Inventory
Plant and equipment
Total asset
REVOLUTION CLOTHIERS
Balance Sheet 20x1
a. Current ratio
b. Quick ratio
c. Debt-to-total-assets ratio
d. Asset turnover
e. Average collection period
$ 27,000
291,000
308,000
393,000
$ 1,019,000
Accounts payable
Accrued taxes
Liabilities and Equity
Bonds payable (long-term)
Common stock
Paid-in capital
Retained earnings
Total liabilities and
times
times
%6
times
days
uity
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.
$ 293,000
125,000
201,000
100,000
150,000
150,000
$ 1,019,000
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