Changes in Various Ratios

Presented below is selected information for Brimmer Company:

	2016	2015
Sales Revenue	$920,000	$840,000
Cost of goods sold	$575,000	$545,000
Interest Expense	$20,000	$20,000
Net Income	$61,000	$52,000
Cash flow from operating activities	$65,000	$55,000
Capital Expenditures	$45,000	$45,000
Accounts receivable(net) December 31	$126,000	$120,000
Inventory, December 31	$196,000	$160,000
Stockholders' equity, December 31	$450,000	$400,000
Total assets, December 31	$750,000	$675,000

Required:

A. Calculate the following ratios for 2016. The 2015 results are given for comparative purposes.

	2015
1. Gross profit percentage	33.5 percent
2. Return on assets	8.3 percent
3. Return sales	6.2 percent
4. Return in common stockholders' equity (no preferred stock was outstanding)	13.9 percent
5. Accounts receivable turnover	7.50
6. Average collection period	48.7 days
7. Inventory turnover	3.61
8. Times-interest-earned ratio	4.80
9. Operating-cash-flow-to-capital-expenditures ratio	1.22

B. Comment on the charges between the two years.