Compute the average collection period for year

Question

Financial statements for Pracht Company appear below:

Pracht Company   Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)
	Year 2		Year 1
Current assets:
Cash and marketable securities	$	180	$	170
Accounts receivable, net		130		100
Inventory		150		160
Prepaid expenses		50		60
Total current assets		510		490
Noncurrent assets:
Plant and equipment, net		1,880		1,800
Total assets	$	2,390	$	2,290
Current liabilities:
Accounts payable	$	90	$	140
Accrued liabilities		110		80
Notes payable, short term		140		130
Total current liabilities		340		350
Noncurrent liabilities:
Bonds payable		490		500
Total liabilities		830		850
Stockholders' equity:
Preferred stock, $10 par, 15%		100		100
Common stock, $10 par		140		140
Additional paid-in capital--common stock		200		200
Retained earnings		1,120		1,000
Total stockholders' equity		1,560		1,440
Total liabilities and stockholders' equity	$	2,390	$	2,290

Pracht 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		50
Net income before taxes		260
Income taxes(30%)		78
Net income	$	182

Dividends during Year 2 totaled $62 thousand, of which $15 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $160.

Required:
a.	Compute the earnings per share (of common stock) for Year 2. (Omit the "$" sign in your response. Round your answer to 2 decimal places.)

Earnings per share

$

b.	Compute the price-earnings ratio for Year 2. (Round your answer to 1 decimal place.)

Price-earnings ratio

c.	Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Dividend payout ratio

%

d.	Compute the dividend yield ratio for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Dividend yield ratio

%

e.	Compute the return on total assets for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on total assets

%

f.	Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on common stockholders' equity

%

g.	Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Book value per share

$

h.	Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)

Working capital

$

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

Current ratio

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

Acid-test ratio

k.	Compute the accounts receivable turnover for Year 2. (Omit the "$" sign in your response.)

Accounts receivable turnover

$

l.	Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

Average collection period

m.	Compute the inventory turnover for Year 2. (Omit the "$" sign in your response.)

Inventory turnover

$

n.	Compute the average sale period for Year 2. (Use 365 days in a year. Round your answer to 1 decimal place.)

Average sale period

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

Times interest earned

p.	Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)

Debt-to-equity ratio