Praven Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)
Year 2 Year 1
Current 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
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
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.
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