The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,570,000, with 75 percent of sales sold on credit.

STUD CLOTHIERS Balance Sheet 20X1
Assets			Liabilities and Equity
Cash	$	20,000	Accounts payable	$	246,000
Accounts receivable		350,000	Accrued taxes		108,000
Inventory		260,000	Bonds payable (long-term)		126,000
Plant and equipment		350,000	Common stock		100,000
			Paid-in capital		150,000
			Retained earnings		250,000
Total assets	$	980,000	Total liabilities and equity	$	980,000

Compute the following ratios:

a.	Current ratio		times
b.	Quick ratio		times
c.	Debt-to-total-assets ratio		%
d	Asset turnover		times
e .	Average collection period		days

Answer rating: 100% (QA)

a Current ratio Current ratio Current Assets Current Liabilities Current Assets Cash Accounts receiv... View the full answer