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The Balance sheet for Sam Corporation

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1. The Balance sheet for Sam Corporation is shown below. Sales for the year were $3,040,000, with 75% of sales sold on credit.3-19
Sam Corporation
Balance Sheet 2007
Assets Liabilities and Stockholders Equity
Cash.......................$ 50,000 Accounts payable................$ 220,000
Accounts receivable...... 280,000 Accrued Taxes................... 80,000
Inventory...................240,000 Bonds payable (long term)..... 118,000
Plant and Equipment......380,000 Common Stock................... 100.000
Paid -in capital................... 150,000
Retained earnings................ 282,000
Total liabilities and
Total Assets...............$950,000 stockholder equity............$ 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.

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Solution Summary

This solution is comprised of a detailed explanation to compute the following ratios
a. Current ratio
b. Quick ratio
c. Debt to total assets ratio
d. Asset turnover
e. Average collection period.

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1. The Balance sheet for Sam Corporation is shown below. Sales for the year were $3,040,000, with 75% of sales sold on credit.3-19
Sam Corporation
Balance Sheet 2007
Assets Liabilities and Stockholders Equity
Cash.......................$ 50,000 Accounts payable................$ 220,000
Accounts receivable...... 280,000 Accrued ...

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