Basic Financial State The accounting staff ST Enterprise.com the finance ratements for the 2017 calendar year. The team for the current you and the comme position for 2017 and 2016 for SST Enterprises Statement of Income For the Year Ended December 31, 2017 (thousands omitted) Reven het 1600.000 Other 49,000 Tree 5645.000 Ex Cost of goods sold 500.000 Research and development 18.000 Selling and administrative 120,000 Interest 35.000 Total expenses 1558.000 Income before income taxes 157.000 Incontre 27.000 Net Income 300.000 SST Enterprises Comparative Statements of Financial Position December 31, 2017 and 2016 (thousands omitted) 2017 2016 Assets Current assets: Cash and short-term investments $27,000 $20,000 Receivables, less allowance for doubtful accounts ($1,100 in 2017 and $1,400 in 2016) 36,000 37,000 35,000 42,000 Inventories, at lower of FIFO cost or market Prepaid items and other current assets 2,000 1,000 $100,000 $100,000 Total current assets Property, plant, and equipment: $9,000 $9,000 Land Buildings and equipment, less accumulated depreciation ($74,000 in 2017 and $62,000 in 2016) 191,000 186,000 $200,000 $195,000 Total property, plant, and equipment $300,000 $295,000 Total assets Liabilities and Stockholders' Equity Current liabilities: eBook Print Item Liabilities and Stockholders' Equity Current liabilities: Short-term loans $20,000 $15,000 Accounts payable 80,000 68,000 Salaries, wages, and other 5,000 7,000 Total current liabilities $105,000 $90,000 Long-term debt $15,000 $40,000 Total liabilities $120,000 $130,000 Stockholders' equity: Common stock, at par $50,000 $50,000 Paid-in capital in excess of par 25,000 25,000 Total paid-in capital $75,000 $75,000 > Retained earnings 105,000 90,000 Total stockholders' equity $180,000 $165,000 Total liabilities and owners' equity $300,000 $295,000 Required: 1. Calculate the following financial ratios for 2017 for SST Enterprises: Total abilities and equity 1:100,000 $205,000 Required: 1. Calculate the following financial ratios for 2017 for SST Enterprises Assume that all sales and all purchases are on credit. Round items, and to the nearest whole number. Round all other amounts to two decimal places. Asume a 30 d. a. Time interest earned times ti, Retum on totales 9 to 1 to 1 to 1 Return on common stockholders equity d. Debtto-equity ratio Cat December 31, 2017) 6. Current ratio Cat December 31, 2017) 1. Quick (acid-test) ratio Cat December 31, 2017) 9. Accounts receivable turnover ratio (Assume that all sales are on Credit) h. Number of days' sales in receivables 1. Inventory tumover ratio (Asume that all purchases are on credit) 3. Number of days' sales in Inventory times days times days days k Number of days in cash operating cyde 2. Which of the following statements pertaining to ratio analysis of SST Enterprises is true? All of these are true Gays The company has low number of days' receivables outstanding indicating strong collection efforts. While the company has a strong interest coverage ratio, there is no guarantee that its debt service coverage will also be high. While the company has strong liquidity, its inventory has crept up in 2017 which could signal a problem. All of these are true. All of these are true