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

Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)
	Year 2		Year 1
Asset:
Current assets:
Cash	$	180	$	190
Accounts receivable		290		300
Inventory		190		180
Prepaid expenses		15		15
Total current assets		675		685
Plant and equipment, net		952		932
Total assets	$	1,627	$	1,617
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	240	$	230
Accrued liabilities		130		130
Notes payable, short term		180		190
Total current liabilities		550		550
Bonds payable		270		320
Total liabilities		820		870
Stockholders' equity:
Common stock, $1 par value		100		100
Additional paid-in capital--common stock		110		110
Retained earnings		597		545
Total stockholders' equity		807		755
Total liabilities and stockholders' equity	$	1,627	$	1,625

Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)
Sales (all on account)	$	1,490
Cost of goods sold		866
Gross margin		624
Selling and administrative expenses		406
Net operating income		218
Interest expense		47
Net income before taxes		171
Income taxes (30%)		51
Net income	$	120

j.	Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)

	Current ratio 34.80

k.	Compute the acid-test ratio for Year 2. (Round your answer to one decimal place.)

	Acid-test ratio 43.0

l.	Compute the accounts receivable turnover for Year 2. (Round your answer to 2 decimal places.)

	Accounts receivable turnover 34.80

m.	Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)

	Average collection period 12.0 Days

n.	Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places.)

	Inventory turnover 65.00

o.	Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)

	Average sale period 12.0 Days

p.	Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)

	Times interest earned 12.90

q.	Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places. e.g. 0.1234 = 0.12)

	Debt-to-equity ratio 67.00

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