Selected information from the comparative financial statements of Francona Company for the years ended December 31, 2016 and December 31, 2017 appear below:

2017 2016

Cash $370,000 $135,000

Accounts receivable (net) 175,000 200,000

Inventory 130,000 170,000

Property, plant and equipment 425,000 295,000

Total assets 1,100,000 800,000

Current liabilities 140,000 110,000

Long-term debt 410,000 300,000

Owners equity 550,000 390,000

Total liabilities and owners equity 1,100,000 800,000

Net sales 900,000 700,000

Cost of goods sold 600,000 530,000

Interest expense 40,000 25,000

Income tax expense 60,000 29,000

Net income 120,000 85,000

Net cash provided by operating activities 220,000 135,000

Answer the following questions relating the Francona Company to the year ended December 31, 2017.

A. The inventory during 2017 was a ___ ________________ of cash. (Fill in source or use and amount.)

B. The number of times interest earned ratio in 2017 is ___ Please Note: EBIT = Net Income + Income tax expense + Interest expense.

C. The long-term debt for 2017 was a ______ ______________ of cash. (Fill in source or use and amount.)

D. The return on assets ratio for 2017 is ____________________.

E. Prepare a Sources and Uses of Cash Statement for 2017.