Reed's Clothiers

Running head: REED'S CLOTHIER - WEEK 4

Reed's Clothier - Week 4

Eric Ochoa

University of Phoenix

Finance for Business

FIN/370

Carlos Chavez

Nov 18, 2009

Reed's Clothier - Week 4

# 1

| | | | |Reed's |Industry |

| |Liquidity Ratios | | | |

| |Current Ratio | | |2.02 |2.7 |

|(Current Assets/Current Liaibilities) |($921,000/$457,000) | | |

| |Quick Ratio | | |0.94 |1.6 |

|(Current Assets-inventories)/Current Liabilities |(921,000-491,000)/457,000 | | |

| |Receivables Turnover | |4.93 |7.7 |

| |(sales/accounts receivable) |(2,035,000/413,000) | | |

| |Average Collection Period | |74.08 |47.4 |

|(accounts receivable/(daily credit sales) |413000(/235000/365) | | |

| | | | | | |

| |Efficiency ratios | | | |

| |Total Asset Turnover | |2.42 |1.9 |

|(Cost of sales/total assets) |(1,428,000/1,591,000) | | |

| |Inventory Turnover | |2.91 |7 |

|(cost of sales/inventories)...