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 $800,000 Other 60,000 Total revenue $860,000 Expenses: Cost of goods sold $540,000 Research and development 25,000 Selling and administrative 155,000 Interest 20,000 Total expenses $740,000 Income before income taxes $120,000 Income taxes 48,000 Net income $72,000 CCB Enterprises Comparative Statements of Financial Position December 31, 2016 and 2015 (thousands omitted) 2016 2015 Assets Current assets: Cash and short-term investments $26,000 $21,000 Receivables, less allowance for doubtful accounts ($1,100 in 2016 and $1,400 in 2015) 48,000 50,000 Inventories, at lower of FIFO cost or market 65,000 62,000 Prepaid items and other current assets 5,000 3,000 Total current assets $144,000 $136,000 Other assets: Investments, at cost $106,000 $106,000 Deposits 10,000 8,000 Total other assets $116,000 $114,000 Property, plant, and equipment: Land $12,000 $12,000 Buildings and equipment, less accumulated depreciation ($126,000 in 2016 and $122,000 in 2015) 268,000 248,000 Total property, plant, and equipment $280,000 $260,000 Total assets $540,000 $510,000 Liabilities and Owners Equity Current liabilities: Short-term loans $22,000 $24,000 Accounts payable 72,000 71,000 Salaries, wages, and other 26,000 27,000 Total current liabilities $120,000 $122,000 Long-term debt $160,000 $171,000 Total liabilities $280,000 $293,000 Owners equity: Common stock, at par $44,000 $42,000 Paid-in capital in excess of par 64,000 61,000 Total paid-in capital $108,000 $103,000 Retained earnings 152,000 114,000 Total owners equity $260,000 $217,000 Total liabilities and owners equity $540,000 $510,000 Required: 1. Calculate the following financial ratios for 2016 for CCB Enterprises: Round items a, b, h, j, and k to the nearest whole number. Round all other amounts to two decimal places. Assume a 360-day year. a. Times interest earned 7 to 1 b. Return on total assets 16 % c. Return on common stockholders' equity 30.19 % d. Debt-to-equity ratio (at December 31, 2016) 1.08 to 1 e. Current ratio (at December 31, 2016) 1.2 to 1 f. Quick (acid-test) ratio (at December 31, 2016) 1.5 to 1 g. Accounts receivable turnover ratio (Assume that all sales are on credit.) 16.33 times h. Number of days' sales in receivables 22 days i. Inventory turnover ratio (Assume that all purchases are on credit.) 8.5 times j. Number of days' sales in inventory 42 days k. Number of days in cash operating cycle 64 days