Problem:
The balance sheet for the Bryan Corporation is shown below. Sales for the year were $3,040,000, with 75 percent of sales sold on credit.
Bryan Corporation
Balance Sheet 201X
Assets Liabilities and stockholders euity
| Cash |
$50,000 |
Accounts payable |
$220,000 |
| Accounts receivable |
$280,000 |
Accrude taxes |
$80,000 |
| Inventory |
$240,000 |
Bond payable (long-term) |
118,000 |
| Plan and Equipment |
380,000 |
Common Stock |
100,000 |
|
|
Paid-in capital |
150,000 |
|
|
Retained earning |
282,000 |
|
|
total Liabilities and stockholders euity |
$950,000 |
Compute the following ratios:
a. Current ratio.
b. Quick ratio.
c. Debt-to-total-assets ratio.
d. Asset turnover.
e. Average collection period.