ABC Company belongs to the oil trading industry. Its most recent balance sheet and income statement appear below:

	Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)
		Year 2	Year 1
	Assets
	Current assets:
	Cash ....................................................................	$ 30	$ 110
	Accounts receivable ............................................	210	260
	Inventory .............................................................	190	170
	Prepaid expenses .................................................	70	70
	Total current assets ................................................	500	610
	Plant and equipment, net ........................................	810	740
	Total assets .............................................................	$1,310	$1,350
	Liabilities and Stockholders Equity
	Current liabilities:
	Accounts payable ................................................	$ 140	$ 150
	Accrued liabilities ...............................................	30	30
	Notes payable, short term ...................................	40	40
	Total current liabilities ...........................................	210	220
	Bonds payable ........................................................	190	240
	Total liabilities .......................................................	400	460
	Stockholders equity:
	Preferred stock, $100 par value, 5% ...................	100	100
	Common stock, $2 par value ..............................	400	400
	Additional paid-in capitalcommon stock ..........	130	130
	Retained earnings ................................................	280	260
	Total stockholders equity......................................	910	890
	Total liabilities & stockholders equity..................	$1,310	$1,350

	Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)
	Sales (all on account) .............................................	$1,260
	Cost of goods sold..................................................	770
	Gross margin ..........................................................	490
	Selling and administrative expense ........................	400
	Net operating income .............................................	90
	Interest expense......................................................	26
	Net income before taxes.........................................	64
	Income taxes (30%) ...............................................	19
	Net income .............................................................	$ 45

Required:

A. Compute the following for Year 2:

a. Working capital.

b. Current ratio.

c. Acid-test ratio.

d. Accounts receivable turnover.

e. Average collection period.

f. Inventory turnover.

g. Average sale period

B. What can you say about the companys short-term liquidity?

C. If the industry average in terms of collection period is 45 days, and inventory turnover is 6 times, how is the company performing compared to the industry?