Question

Lundberg Corporation's most recent balance sheet and incomestatement 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	$	160	$	170
Accounts receivable		270		280
Inventory		170		160
Prepaid expenses		25		25
Total current assets		625		635
Plant and equipment, net		954		934
Total assets	$	1,579	$	1,569
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	220	$	210
Accrued liabilities		110		110
Notes payable, short term		160		170
Total current liabilities		490		490
Bonds payable		250		300
Total liabilities		740		790
Stockholders' equity:
Preferred stock, $100 par value, 10%		260		260
Common stock, $1 par value		100		100
Additional paid-in capital--common stock		110		110
Retained earnings		369		295
Total stockholders' equity		839		765
Total liabilities and stockholders' equity	$	1,579	$	1,555

Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)
Sales (all on account)	$	1,480
Costof goods sold		868
Gross margin		612
Selling and administrative expenses		334
Netoperating income		278
Interest expense		49
Netincome before taxes		229
Income taxes (30%)		69
Netincome	$	160

Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare.

o.	Compute the average sale period for Year 2. (Use 365days in a year. Do not round intermediate calculations. Round youranswer to 1 decimal place.)

Average sale period

days

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

Times interest earned

q.	Compute the debt-to-equity ratio for Year 2. (Round youranswer to 2 decimal places.)

Debt-to-equity ratio