Chapter 3, Problem 22P

The balance sheet for Stud Clothiers is shown below. Sales for the year were $\text{\$2,400,000}$ , with 90 percent of sales sold on credit.

$\begin{array}{l}\text{Compute the following ratios:}\hfill \\ \text{a}\text{. Current ratio}\text{.}\hfill \\ \text{b}\text{. Quick ratio}\text{.}\hfill \\ \text{c}\text{. Debt-to-total-assets ratio}\text{.}\hfill \\ \text{d}\text{. Asset turnover}\text{.}\hfill \\ \text{e}\text{. Average collection period}\text{.}\hfill \end{array}$