Long term debt to Equity. 0.5 to 1 ******. Total asset turnover. Average collection period. „2.5 times 18 days (assume a 360 day year and all sales on credit) 9 times Inventory turnover. Gross profit. 10% Acid test ratio. 1:1 ....... Cash . $? Notes payable . $100,000 Account receivable . Long term debt .? Inventory. Share capital . 100,000 ...... Plant and equipment . Retained earnings . 100,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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Long term debt to Equity.
0.5 to 1
******.
Total asset turnover.
Average collection period.
„2.5 times
18 days (assume a 360 day year and all sales on credit)
9 times
Inventory turnover.
Gross profit.
10%
Acid test ratio.
1:1
.......
Cash .
$?
Notes payable . $100,000
Account receivable .
Long term debt .?
Inventory.
Share capital .
100,000
......
Plant and equipment .
Retained earnings .
100,000
Transcribed Image Text:Long term debt to Equity. 0.5 to 1 ******. Total asset turnover. Average collection period. „2.5 times 18 days (assume a 360 day year and all sales on credit) 9 times Inventory turnover. Gross profit. 10% Acid test ratio. 1:1 ....... Cash . $? Notes payable . $100,000 Account receivable . Long term debt .? Inventory. Share capital . 100,000 ...... Plant and equipment . Retained earnings . 100,000
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