Question
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash $ 170 $ 170
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: |
Year 2 | Year 1 | |||
Current assets: | ||||
Cash | $ | 170 | $ | 170 |
Accounts receivable | 170 | 180 | ||
Inventory | 150 | 190 | ||
Prepaid expenses | 51 | 61 | ||
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Total current assets | $ | 541 | $ | 601 |
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Current liabilities: | ||||
Accounts payable | $ | 100 | $ | 100 |
Accrued liabilities | 110 | 81 | ||
Notes payable, short term | 61 | 51 | ||
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Total current liabilities | $ | 271 | $ | 232 |
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Sales on account during the year totaled $1,370 thousand. Cost of goods sold was $855 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.) |
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