Raridan Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account). Cost of goods sold.... Gross margin. Selling and administrative expense.. Net operating income. Interest expense. Net income before taxes.. Income taxes (30%) Net income a. Working Capital b. Current ratio. c. Acid-test ratio d. Average collection period e. Average sales period f. Times interest earned $1,900 1.330 Required: 1. Using the Income Statement from Raridan present the Balance Sheet and Income Stat and for YEAR 2 ONLY in common-size format 2. Compute the following ratios for Year 2: g. Debt-to-equity ratio h. Gross Margin percentage 570 220 350 30 320 96 $224 11. Financial statements for Raridan Company appear below: Raridan Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Cash and marketable securities. Accounts receivable, net Inventory. Prepaid expenses. Total current assets. Noncurrent assets: Plant & equipment, net Total assets. Current liabilities: Accounts payable.. Accrued liabilities Notes payable, short term Total current liabilities... Noncurrent liabilities: Bonds payable..... Total liabilities Stockholders' equity: Preferred stock. $10 par, 5%.. Common stock, $10 par. Additional paid-in capital--common stock. Retained earnings Total stockholders' equity.. Total liabilities & stockholders' equity.. Year 2 Year 1 $ 140 $ 140 190 170 100 110 70 70 500 490 1.540 1.520 $2.040 $2.010 $ 110 $ 110 50 40 110 110 270 260 280 550 300 560 120 200 120 200 260 260 910 870 1.490 1.450 $2,040 $2.010