Changes in Various Ratios

Presented below is selected information for Brimmer Company:

$\backslash$begin$\{$tabular$\}\{|$l$|$r$|$r$|\}$

$\backslash$hline & Current Year & Prior Year $\backslash \backslash$

$\backslash$hline Sales revenue & $\backslash (\backslash$$ $914,000\backslash )$ & $\backslash (\backslash$$ $840,000\backslash )\backslash \backslash$

$\backslash$hline Cost of goods sold & $579,000$ & $542,000\backslash \backslash$

$\backslash$hline Interest expense & $24,000$ & $20,000\backslash \backslash$

$\backslash$hline Income tax expense & $31,000$ & $24,000\backslash \backslash$

$\backslash$hline Net income & $65,000$ & $52,000\backslash \backslash$

$\backslash$hline Cash flow from operating activities & $69,000$ & $55,000\backslash \backslash$

$\backslash$hline Capital expenditures & $46,000$ & $45,000\backslash \backslash$

$\backslash$hline Accounts receivable $($net$),$ December $31$ & $130,000$ & $120,000\backslash \backslash$

$\backslash$hline Inventory, December $31$ & $200,000$ & $160,000\backslash \backslash$

$\backslash$hline Stockholders' equity, December $31$ & $454,000$ & $400,000\backslash \backslash$

$\backslash$hline Total assets, December $31$ & $734,000$ & $660,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required

Calculate the following ratios for the current year. The prior year results are given for comparative purposes.

Round answers to one decimal place. Use $365$ days in a year.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & Prior Year & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Current Year$\}\backslash \backslash$

$\backslash$hline $1.$ Gross profit percentage & $35\mathrm{.}5\backslash \%$ & & $\backslash (\backslash$times $\backslash )$ & $\backslash \%\backslash \backslash$

$\backslash$hline $2.$ Return on assets & $8\mathrm{.}3\backslash \%$ & & $\backslash (\backslash$times $\backslash )$ & $\backslash \%\backslash \backslash$

$\backslash$hline $3.$ Return on sales & $6\mathrm{.}2\backslash \%$ & & $7\mathrm{.}1$ & $\backslash \%\backslash \backslash$

$\backslash$hline $4.$ Return on common stockholders' equity & & & & $\backslash \backslash$

$\backslash$hline $($no preferred stock was outstanding$)$ & $13\mathrm{.}9\backslash \%$ & & $\backslash ($ x $\backslash )$ & $\backslash \%\backslash \backslash$

$\backslash$hline $5.$ Accounts receivable turnover & $8\mathrm{.}0$ & & $\backslash (\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline $6.$ Average collection period & $45\mathrm{.}6$ & days & $\backslash ($ x $\backslash )$ & days $\backslash \backslash$

$\backslash$hline $7.$ Inventory turnover & $3\mathrm{.}6$ & & $\backslash ($ x $\backslash )$ & $\backslash \backslash$

$\backslash$hline $8.$ Times$-$interest$-$earned ratio & $4\mathrm{.}8$ & & $\backslash (\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline $9.$ Operating$-$cash$-$flow$-$to$-$capital$-$expenditures ratio & $1\mathrm{.}2$ & & $\backslash (1\mathrm{.}5\backslash$checkmark $\backslash )$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$