Thornton Corporation reported these figures:

Thornton cooperation Thornton Corporation

Balance sheets Income Statement

December 31, 2017 and 2016 For the year ended December 31,2017

(Amounts in thousands) (Amounts in thousands)

Assets 2017 2016 2017

Current Assets: Sales Revenues $13,140

Cash $5,700 $2,700 Less: Cost of goods sold 1,980

Accounts Receivable 2,100 1,860 Gross Profit $11,160

Inventory 1,000 800 Less: Operating Expenses 660

Other Current Assets 3,950 2,640 Operating Income $10,500

Total Current Assets $12,750 $8,000 Less: Interest expense 500

Other Assets 23,500 20,000 Income before income taxes $10,000

Total Assets $36,250 $28,000 Less: Income tax expense 7,000

Net Income 3,000

Liabilities

Total current liabilities $15,000 $12,500

Long term liabilities 6,250 5,500

Total Liabilities $21,250 $18,000

Stockholders Equity

Total Common Stockholders Equity 15,000 10,000

Total Liabilities and equity $36,250 $28,000

Thornton Corporation has 3,125,000 shares of common stock outstanding. Its stock has traded recently at $31.20 per share. You would like to gain a better understanding of Thornton Corporations financial position. Assume all sales are on credit. Calculate the following ratios for 2017 and interpret the results:

1. Inventory turnover

2. Days sales in receivables

3. Acid-test ratio

4. Times-interest-earned.

5. Gross profit percentage

6. Operating income percentage

7. Return on stockholders equity

8. Earnings per share

9. Price/earnings ratio