Thornton Corporation reported these figures:

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 Corporation’s financial position. Assume all sales are on credit. Calculate the following ratios for 2020 and interpret the results:
a. Inventory turnover
b. Days’ sales in receivables
c. Acid-test ratio
d. Times-interest-earned
e. Gross profit percentage
f. Operating income percentage
g. Return on stockholders’ equity
h. Earnings per share
i. Price/earnings ratio

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12345678 Current assets: Cash A Assets 9 Accounts receivable 10 Inventory 11 Other current assets Total current assets Thornton Corporation Balance Sheets December 31, 2020 and 2019 (amounts in thousands) 12 13 Other assets 14 Total assets 15 16 Liabilities 17 Total current liabilities 18 Long-term liabilities 19 Total liabilities 20 21 Stockholders' equity $ $ $ $ $ 2020 5,700 $ 2,100 1,000 3,950 12,750 $ 23,500 36,250 $ 15,000 $ 6,250 21,250 $ C 2019 2,700 1,860 800 2,640 8,000 20,000 28,000 12,500 5,500 18,000 D Thornton Corporation Income Statement For the Year Ended December 31, 2020 (amounts in thousands) Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income $ $ $ $ $ 2020 13,140 1,980 11,160 660 10,500 500 10,000 7,000 3,000