Using Exhibit 12-9 as a guide, compare C&C Sports? performance to the industry averages. What particular observations and recommendations do you have for George Douglas, president of C&C Sports?

2011 2010 2009 2003 2007 Select Common-Size Percentages:' Cash 3: equivalents 3.0% 3.4% 10.4% 9.3% 6.9% Trade receivables, net 23.1% 22.0% 25.2% 24.6% 22.4% Inventory 41 .2% 41 .2% 33.0% 33.3% 40.2% Property and equipment 11 .1 % 1 3.3% 1 1 .9% 1 3.6% 1 3.7% Short-hem debt 1 3.5% 1 6.2% 143% 13.6% 16.9% Trade payables 1 7.5% 1 5.2% 1 6.3% 12.6% 1 5.9% Long-tent: debt 1 0.1 % 1 2.2% 3.0% 11 .2% 1 1 .6% Stockholders' equity 393% 33.2% 42.1 % 39.2% 42.7% Gross prot 33.?% 36.3% 34.1 % 34.6% 31 .4% Operating expenses 31.4% 32.0% 23.4% 23.9% 26.9% Operating income 6.3% 4.3% 5.6% 5.7% 4.5% Inoome before taxes 5.7% 3.3% 4.3% 4.9% 3.1% Select Ratios? 201 1 2010 2009 2003 200? Current ratio 3.2 3.3 3.3 2.4 2.1 Quick ratio (Acid test} 1.6 1.3 1.5 1.4 1.3 Average collection period 33.2 days 35.6 clays 31.3 clays 3?.6 clays 40.9 clays Inventory tumover [based on sales) 5.1 times 5.4 times 2.0 times 6.2 times 6.6 times Debt-toequity 63% 29.2% 36.6% 55.1 % 61 .1 % Return an asset: 3.5% 1.3% 3.1% 0.4% 3.3% Return on stockholders' equity 9.6% 12.3% 4.9% 1.0% 12.1% 'Rislt Management Association's 20132013 Annuai Statement Studies: Financial Ratio Bend'rrnarlrs, NCAIS 315299. iIndustry median ratio, from Dun 3r Bradstreet's Industry Home Er Key Business Ratios, 2007-2003, 20032009, 20092010r 2010-2011, and 2011-2012 editions, SIC 2329. Cash Accounts receivable, net Total inventory Prepaid expenses Total current assets Properly, plant, 8 equipment, net Other assets Total assets Accounts payable Other accrued expenses Short-term debt Current maturities of long-term debt Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders\" equity C8C SPORTS Balance Sheet Horizontal Analysis Dec. 31,2013 $ 7,752 623,713 640,372 24,388 1 296,225 532,858 41,704 $1 ,870,787 5 441,602 86,749 1 25,000 20,000 673,351 280,000 953,351 21 0,000 707,436 91 7,436 $1 ,870,787 Dec. 31, 2012 5 22,1 14 583,429 547,109 8,164 1,160,816 600,647 35,812 $1,797,275 $ 445,014 115,626 110,000 20,000 690,640 300,000 990,640 210,000 596,635 806,635 m $ Change 5 {14,362} 40,284 93,263 16,224 135,409 {67,7 89} 5, 892 $ 73,512 5 (3,412} {28,877} 15,000 0 {1 7,289} {20,000} {37,289} 0 1 10,801 1 10,801 m 16 Change {64.9%} 6.9% 17.0% 198.7% 11.7% {1 1.3%} 16.5% 4.1% (0.8%} {25.0%} 1 3.6% 0.0% (2.5%} {6.7%} (3.8%} 0.0% 18.6% 13.7% 4.1% CBIC SPORTS Income Statement Horizontal Analysis Dec. 31, 2013 Dec. 31, 2012 $ Change % Change Sales revenue $5,237,000 $4,654,000 $583,000 12.5% Cost of goods sold 3,876,432 3,464,440 411,992 11.9% Gross margin 1,360,568 1,189,560 171,003 14.4% Selling 3: administrative expenses 1,160,566 1,067,721 92,845 8.7% Operating income 200,002 121,339 78,163 64.2% interest expense 41,715 43,21 0 (1,495] (3.5%) Income before taxes 1 53,287 73,629 79,653 101 .3% Income tax expense 47,486 23,589 23,897 101.3% Netincome $ 110,301 5 55,040 55,761 101.3%