Rarick Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands)
		Year 2	Year 1
	Current assets:
	Cash and marketable securities	Php 120	Php 120
	Accounts receivable, net	180	150
	Inventory	100	100
	Prepaid expenses	10	20
	Total current assets	410	390
	Noncurrent assets:
	Plant & equipment, net	1,830	1,780
	Total assets	Php2,240	Php2,170
	Current liabilities:
	Accounts payable	Php 130	Php 150
	Accrued liabilities	30	50
	Notes payable, short term	270	270
	Total current liabilities	430	470
	Noncurrent liabilities:
	Bonds payable	310	300
	Total liabilities	740	770
	Stockholders equity:
	Preferred stock, Php10 par, 10%	100	100
	Common stock, Php5 par	240	240
	Additional paid-in capitalcommon stock	250	250
	Retained earnings	910	810
	Total stockholders equity	1,500	1,400
	Total liabilities & stockholders equity	Php2,240	Php2,170

	Rarick Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands)
	Sales (all on account)	Php2,400
	Cost of goods sold	1,680
	Gross margin	720
	Selling and administrative expense	280
	Net operating income	440
	Interest expense	30
	Net income before taxes	410
	Income taxes (30%)	123
	Net income	Php 287

Year 2 Year! Current assets Cash and marketable sccurities Accounts receivable, nel Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net Php 12 Php 12 0 0 150 100 100 10 20 390 1.830 1.780 Phen24 Pr2.17 . 9 Total assets Current liabilities: Php 13 Php 15 0 0 30 50 220 430 470 310 300 220 Accounts payable Accrued liabilities Notes payable, she term Total current liabilities Noncurrent liabilities Honds payable Total liabilities Stockholders' equily: Preferred stock. Php10 par 10% Commen stock, Plus par Additional puid-in capital-common stock Retained earings Total stockholders' equity Total liabilities & stockholders' equity 100 100 240 910810 1.500 1.400 2.4 pp.12 9 Ratick Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account Cost of goods sold Grossman Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) 410 Net income Required Compute the following for Year 2 a. Current rutie b. Acid-testratie C. Average collection period. d. Inventory tumover e. Times interesi camed f. Debt-to-equity ratio