Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below:

	Year 2			Year 1
Current assets:
Cash	$	196		$	100
Accounts receivable, net		226			226
Inventory		176			166
Prepaid expenses		126			126
Total current assets	$	724		$	618
Current liabilities:
Accounts payable	$	236		$	216
Accrued liabilities		66			66
Notes payable, short term		126			116
Total current liabilities	$	428		$	398

Sales on account during the year totaled $1,380 thousand. Cost of goods sold was $980 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.)

2. Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:

	Claimjumper				Makeover			Total
Sales	$	104,000			$	52,000		$	156,000
Variable expenses		38,440				8,360			46,800
Contribution margin	$	65,560			$	43,640			109,200
Fixed expenses									79,800
Net operating income								$	29,400

Overall contribution margin ratio - 70% Company's overall break-even point in dollar sales - $114,000

a.) Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.