The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,460,000, with 75 percer credit. Cash Accounts receivable k Inventory Plant and equipment ht ences Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity $ 54,000 348,000 Accounts payable Accrued taxes $ 287,000 93,000 272,000 Bonds payable (long-term) 131,000 464,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 377,000 $ 1,138,000 Total liabilities and equity $ 1,138,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. I 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

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,460,000, with 75 percer
credit.
Cash
Accounts receivable
k
Inventory
Plant and equipment
ht
ences
Total assets
REVOLUTION CLOTHIERS
Balance Sheet 20X1
Assets
Liabilities and Equity
$ 54,000
348,000
Accounts payable
Accrued taxes
$ 287,000
93,000
272,000
Bonds payable (long-term)
131,000
464,000
Common stock
100,000
Paid-in capital
150,000
Retained earnings
377,000
$ 1,138,000
Total liabilities and equity
$ 1,138,000
Compute the following ratios:
Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. I
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
Transcribed Image Text:The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,460,000, with 75 percer credit. Cash Accounts receivable k Inventory Plant and equipment ht ences Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 Assets Liabilities and Equity $ 54,000 348,000 Accounts payable Accrued taxes $ 287,000 93,000 272,000 Bonds payable (long-term) 131,000 464,000 Common stock 100,000 Paid-in capital 150,000 Retained earnings 377,000 $ 1,138,000 Total liabilities and equity $ 1,138,000 Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. I 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
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