Basic Financial Ratios

The accounting staff of CCB Enterprises has completed the financial statements for the 2016 calendar year. The statement of income for the current year and the comparative statements of financial position for 2016 and 2015 follow.

CCB Enterprises
Statement of Income
For the Year Ended December 31, 2016
(thousands omitted)
Revenue:
Net sales	$804,720
Other	60,180
Total revenue	$864,900
Expenses:
Cost of goods sold	$531,360
Research and development	24,300
Selling and administrative	156,680
Interest	19,740
Total expenses	$732,080
Income before income taxes	$132,820
Income taxes	53,128
Net income	$79,692

CCB Enterprises
Comparative Statements of Financial Position
December 31, 2016 and 2015
(thousands omitted)
	2016	2015
Assets
Current assets:
Cash and short-term investments	$26,090	$21,100
Receivables, less allowance for doubtful accounts
($1,100 in 2016 and $1,350 in 2015)	48,100	50,220
Inventories, at lower of FIFO cost or market	64,790	61,800
Prepaid items and other current assets	5,060	2,760
Total current assets	$144,040	$135,880
Other assets:
Investments, at cost	$106,090	$106,090
Deposits	9,750	7,920
Total other assets	$115,840	$114,010
Property, plant, and equipment:
Land	$11,970	$11,970
Buildings and equipment, less accumulated depreciation
($125,680 in 2016 and $121,370 in 2015)	267,090	247,980
Total property, plant, and equipment	$279,060	$259,950
Total assets	$538,940	$509,840
Liabilities and Owners Equity
Current liabilities:
Short-term loans	$22,230	$24,090
Accounts payable	71,730	70,880
Salaries, wages, and other	26,010	26,930
Total current liabilities	$119,970	$121,900
Long-term debt	$160,410	$170,200
Total liabilities	$280,380	$292,100
Owners equity:
Common stock, at par	$43,880	$42,130
Paid-in capital in excess of par	63,830	61,010
Total paid-in capital	$107,710	$103,140
Retained earnings	150,850	114,600
Total owners equity	$258,560	$217,740
Total liabilities and owners equity	$538,940	$509,840

Required:

1. Calculate the following financial ratios for 2016 for CCB Enterprises:

Round items h, j, and k to the nearest whole number. Round all other answers to two decimal places. Assume a 360-day year.

a. Times interest earned	______to 1
b. Return on total assets	_______ %
c. Return on common stockholders' equity	______%
d. Debt-to-equity ratio (at December 31, 2016)	______ to 1
e. Current ratio (at December 31, 2016)	______ to 1
f. Quick (acid-test) ratio (at December 31, 2016)	______ to 1
g. Accounts receivable turnover ratio (Assume that all sales are on credit.)	______ times
h. Number of days' sales in receivables	______days
i. Inventory turnover ratio (Assume that all purchases are on credit.)	_____ times
j. Number of days' sales in inventory	____ days
k. Number of days in cash operating cycle	_____days