Hartzog Corporation's most recent balance sheet and income statement appear below:

Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share. 1) Analyze this company's financial status; How do you think they are doing? What made you come to this decision? 2) Would you recommend investing in this company? Why or Why not? Give specific reasons to support your decision. 3) What issues, if any, need to be addressed at this company? Please be sure that you that you substantiate all statements with information derived from the ratios.

Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Year 1 Year 2 Assets Current assets: 180 150 Cash 240 Accounts receivable 260 130 Inventory 140 Prepaid expenses 40 40 Total current assets 610 570 710 720 Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: 200 170 Accounts payable Accrued liabilities 20 20 Notes payable, short term 80 80 Total current liabilities 300 270 Bonds payable 160 180 Total liabilities 450 460 Stockholders' equity: Preferred stock, $100 par value, 5%................ 100 100 Common stock, $2 par value 400 400 Additional paid-in capital--common stock 190 190 Retained earnings 170 150 860 840 Total stockholders' equity Total liabilities & stockholders' equity