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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 $ 200 $ 140

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

Year 2 Year 1
Current assets:
Cash $ 200 $ 140
Accounts receivable 200 210
Inventory 120 160
Prepaid expenses 54 64




Total current assets $ 574 $ 574








Current liabilities:
Accounts payable $ 130 $ 130
Accrued liabilities 80 84
Notes payable, short term 64 54




Total current liabilities $ 274 $ 268









Sales on account during the year totaled $1,400 thousand. Cost of goods sold was $870 thousand.

Required:
a. Compute the following working capital for Year 2.(Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.)

b. Compute the following current ratio for Year 2. (Round your answer to 2 decimal places.)

c. Compute the following acid-test ratio for Year 2. (Round your answer to 2 decimal places.)

d.

Compute the following accounts receivable turnover for Year 2.(Round your answer to 2 decimal places.)

e.

Compute the following average collection period for Year 2.(Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 2 decimal place.)

f. Compute the following inventory turnover for Year 2.(Round your answer to 2 decimal places.)

g.

Compute the following average sale period for Year 2. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 2 decimal place.)

rev: 05_04_2016_QC_CS-50902

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