Reference no: EM131054818
The balance sheet information listed. Sales for the year were $2,400,000 with 90 percent of sales sold on credit. Compute the current ratio, quick ratio, debt to total assets ratio, asset turnover and average collection period. Assets: cash $60,000, accounts receivable $240,000, inventory $350,000, plant and equipment $410,000. Total assets = $1,060,000. Liabilities and equities: accounts payable $220,000, accrued taxes $30,000, bonds payable(long term) $150,000, common stock $80,000, paid in capital $200,000, retained earnings $380,000. Total liabilities and equity = $1,060,000.
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: The balance sheet information listed. Sales for the year were $2,400,000 with 90 percent of sales sold on credit. Compute the current ratio, quick ratio, debt to total assets ratio, asset turnover and average collection period.
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