Part 1 of 2

Balance sheet

December 31, year 2 and year 1

Assets	Year 2	Year 1
Current Assets
Cash	$190,000	$190,000
Account receivable	$197,000	$200,000
Inventory	232,000	$200,000
Prepaid expenses	$9,000	$10,000
Total Current assets	$628,000	$600,000
Plant and equipment, net	$695,000	$700,000
Total assets	$1,323,000	$1,300,000
Liabilities and Stockholders Equity
Current liabilities
Account payable	$206,000	$200,000
Accrued liabilities	$104,000	$90,000
Notes payable, short term	$41,000	$50,000
Total current liabilities	$351,000	$340,000
Bonds payable	$130,000	$130,000
Total liabilities	$481,000	$470,000
Stockholders equity
Common stock, $2 par value	$160,000	$160,000
Additional paid-in-capital-common stock	$70,000	$70,000
Retained earnings	$612,000	$600,000
Total stockholders equity	$842,000	$830,000
Total liabilities and stockholders equity	$1,323,000	$1,300,000

Income statement

For the year ended December 31, year 2

Sales(all on account)	$1,330,000
Cost of goods sold	$740,000
Gross margin	$590,000
Operating expenses	$555,000
Net operating income	$35,000
Interest expense	$11,000
Net income before taxes	$24,000
Income taxes (30%)	$7,200
Net income	$16,800

What is the companys working capital at the end of year 2?

What is the companys current ratio at the end of year 2?

What is the companys acid-test (quick) ratio at the end of year 2?

What is the companys accounts receivable turnover for year 2?

What is the companys average collection period (age of receivables) for year 2?