Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2Year 1Current assets: Cash$202? $100? Accounts receivable, net 232? 232? Inventory 182? 172? Prepaid expenses 132? 132? Total current assets$748? $636? Current liabilities: Accounts payable$242? $222? Accrued liabilities 72? 72? Notes payable, short term 132? 122? Total current liabilities$446? $416? Sales on account during the year totaled $1410 thousand. Cost of goods sold was $1010 thousand.Required:Compute the following for Year 2:a. Working capital. (Enter your answer in thousands of dollars, i.e., 100,000 should be entered as 100.)b. Current ratio. (Round your answer to 2 decimal
places.)c. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)d. Accounts receivable turnover. (Round your answer to 2 decimal places.)e. Average collection period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.)f. Inventory turnover. (Round your answer to 2 decimal places.)g. Average sale period. (Use 365 days in a year. Round your intermediate calculations to 2 decimals places and your final answer to 1 decimal place.)a.Working capital??b.Current ratio??c.Acid-test ratio??d.Accounts receivable turnover??e.Average collection period?daysf.Inventory turnover??g.Average sale period?days
What will be an ideal response?
| a. | Working capital | $302? | ? |
| b. | Current ratio | 1.68? | ? |
| c. | Acid-test ratio | 0.97? | ? |
| d. | Accounts receivable turnover | 6.08? | ? |
| e. | Average collection period | 60.0? | days |
| f. | Inventory turnover | 5.71? | ? |
| g. | Average sale period | 63.9? | days |
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What will be an ideal response?
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