Use the following information to answer questions 1 through 10. Financial statements for Praven Company appear below: Praven Company Statement of Financial Position Dece

Use the following information to answer questions 1 through 10.        
       

Financial statements for Praven Company appear below:                

Praven Company                   

Statement of Financial Position                    

December 31, Year 2 and Year 1                 

(dollars in thousands)            

             Year 2             Year 1

Currrent assets:                     

Cash and marketable securities           150      130

Accounts receivable, net          190      160

Inventory        170      180

Prepaid expenses         50        40

Total current assets     560      510

Noncurrent assets:                 

Plant & equipment, net            1,420  1,330

Total assets      $1,980             $1,840

Current liabilities:                   

Accounts payable        110      100

Accrued liabilities        90        60

Notes payable, short term       260      260

Total current liabilities            460      420

Noncurrent liabilities:            

Bonds payable            400      400

Total liabilities 860      820

Stockholder’s equity:            

Preferred stock, $5 par, 15%  120      120

Common stock, $10 par          240      240

Additional paid-in capital—common stock    210      210

Retained earnings       550      450

Total stockholders’ equity      1,120  1,020

Total liabilities & stockholders’ equity           $1,980             $1,840

Dividends during Year 2 totaled $89 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $130.                 

Praven Company                   

Income Statement                 

For the Year Ended December 31, Year 2               

(dollars in thousands)            

Sales (all on account)  1,700

Cost of goods sold       1,190

Gross margin   510   

Selling and administrative expense      200   

Net operating income  310   

Interest expense           40

Net income before taxes         270

Income taxes (30%)    81

Net income      $189

Required:      

Compute the following for Year 2:  

1. Book value per share         

2. Working capital     

3. Current ratio          

4. Acid-test ratio       

5. Accounts receivable turnover       

6. Average collection period 

7. Inventory turnover

8. Average sale period          

9. Times interest earned        

10. Debt-to-equity ratio