Platinum Corporation belongs to the rubber tire trading industry. Its most recent balance sheet and income statement appear below:

Statement of Financial Position

December 31, Year 2 and Year 1

(in thousands of dollars)

Year 2 Year 1

Assets

Current assets:

Cash $30 $110

Accounts receivable 210 260

Inventory 190 170

Prepaid expenses 70 70

Total current assets 500 610

Plant and equipment, net 810 740

Total assets $1,310 $1,350

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $140 $150

Accrued liabilities 30 30

Notes payable, short term 40 40

Total current liabilities 210 220

Bonds payable 190 240

Total liabilities 400 460

Stockholders' equity:

Preferred stock, $100 par value, 5% 100 100

Common stock, $2 par value 400 400

Additional paid-in capital-common stock 130 130

Retained earnings 280 260

Total stockholders' equity 910 890

Total liabilities & stockholders' equity $1,310 $1,350

Income Statement

For the Year Ended December 31, Year 2

(in thousands of dollars)

Sales (all on account) $1,260

Cost of goods sold 770

Gross margin 490

Selling and administrative expense 400

Net operating income 90

Interest expense 26

Net income before taxes 64

Income taxes (30%) 19

Net income $45

Required:

A. Compute the following for Year 2:

a. Working capital.

b. Current ratio.

c. Acid-test ratio.

d. Accounts receivable turnover. e. Average collection period.

f. Inventory turnover.

g. Average sale period

B. What can you say about the company's short-term liquidity?

C. If the industry average in terms of collection period is 45 days, and inventory turnover is 6 times, how is the company performing compared to the industry?