Required: 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.

Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Year 2 Year 1 Current assets Cash Accounts receivable Inventory $ 90 $ 110 220 270 150 130 Total current assets Plant and equipment, net 610 1000920 $1.510 $1.530 510 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short term $ 90 S 110 60 60 Total current liabilities 200 230 Bonds payable Total liabilities Stockholders equity Common stock, $1 par value Additional paid-in capital--common stock Retained eamings 400 240 400 240 1180 1160 $1510 $1530 Total liabilities & stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) $1,400 540 450 Sales (all on account) Selling and administrative expense. Interest expense. Income taxes (30%) 90 71 S 50 Net income