Wegener Corporation's most recent balance sheet and income statement appear below:

Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars)

Assets	Year 2	Year 1
Current assets
Cash	$90	$110
Accounts receivable	220	270
Invenotry	130	150
Prepaid expenses	70	80
Total current assets	510	610
Plant and equipment, net	1,000	920
Total assets	$1,510	$1,530
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$90	$110
Accrued liabilities	60	60
Notes payable, short term	50	60
Total current liabilities	200	230
Bonds payable	130	140
Total liabilities	330	370
Stockholders' equity
Common stock, $1 par value	400	400
Additional paid-in capital - common stock	240	240
Retained earnings	540	520
Total stockholders' equity	1,180	1,160
Total liabilities & stockholders' equity	$1,510	$1,530

Income Statement for the year ended December 31, Year 2 (in thousands of dollars)

Sales (all on account)	$1,400
Cost of goods sold	860
Gross margin	540
Selling and administrative expense	450
Net operating income	90
Interest expense	19
Net income before taxes	71
Income taxes (30%)	21
Net income	$50

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.

Answer rating: 100% (QA)

aWorking capital Current assets Current liabilities 510 200 310 b Current r... View the full answer