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Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash Accounts receivable, net Inventory
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities $166 196 146 96 $604 $100 196 136 96 $528 $186 36 $206 36 96 $338 86 $308 Sales on account during the year totaled $1,230 thousand. Cost of goods sold was $830 thousand. Required: Compute the following for Year 2: a. Working capital. (Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts receivable turnover. (Round your answer to 2 decimal places.) e. Average collection period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.) f. Inventory turnover. (Round your answer to 2 decimal places.) g. Average sale period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.) 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 days days
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