The balance sheet for Stud Clothiers is shown below. Sales for the year were $2,400,000, with 90 percent of sales sold on credit.
Balance sheet 20X1
Liabilities and Equity
Bonds payable (long term)
Plant and equipment
Paid in capital
Total LIbilities and Equity
Compute the following:
d. Assets turnover ratio.
The asset turnover ratio of the stud clothier company is 2.26.
The asset turnover ratio is computed to measure the efficiency of the company with which it is deploying its assets to generate the revenues.
Arrange the following income statement items so they are in the proper order of an income statement:
Earning per share
Earning before taxes
Cost of goods sold
Earning after taxes
Preferred Stcok dividends
Earning available to common stockholders
Selling and administrative expense
All State Trucking Co. has the following ratios compared to its industry for last year:
Return on sales
Return on assets
Explain why the return-on-assets ratio is so much more favorable than thereturn-on-sales ratio compared to the industry. No numbers are necessary;a one-
sentence answer is all that is required.
94% of StudySmarter users get better grades.Sign up for free