Praven Company

Financial statements for Praven Company appear below: Praven Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Currrent assets: Year 2 Year 1 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