Comprehensive Financial Statement Analysis 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?

Exhibit 12.9
Select Common-Size Percentages:1	2017	2016	2015	2014	2013	2012
Cash & equivalents	6.6%	11.0%	10.2%	9.6%	7.2%	7.9%
Trade receivables, net	21.9%	20.2%	21.4%	25.7%	24.3%	25.0%
Inventory	38.7%	36.4%	37.6%	36.7%	41.0%	40.5%
Property and equipment	13.9%	12.5%	13.1%	11.9%	13.2%	10.7%
Short-term debt	14.0%	14.9%	12.0%	13.4%	14.3%	13.7%
Trade payables	12.7%	14.2%	15.7%	16.8%	17.1%	17.1%
Long-term debt	12.6%	10.9%	8.7%	6.9%	11.8%	9.6%
Stockholders equity	35.3%	41.3%	42.7%	42.3%	35.2%	40.3%
Gross profit	39.4%	38.4%	36.6%	34.9%	35.2%	37.6%
Operating expenses	35.2%	32.3%	31.0%	29.8%	30.9%	31.3%
Operating income	4.2%	6.1%	5.6%	5.1%	4.3%	6.3%
Income before taxes	3.4%	5.3%	4.8%	4.3%	3.3%	5.7%
Select Ratios:	2017	2016	2015	2014	2013	2012
Current ratio	2.0	1.9	2.2	2.0	2.0	1.8
Quick ratio (Acid test)	0.8	0.9	0.8	0.7	0.7	0.7
Average collection period	36 days	32 days	36 days	38 days	37 days	36 days
Inventory turnover	3.2 times	3.3 times	3.6 times	4.1 times	3.5 times	3.9 times
Debt-to-equity	1.6	1.6	1.4	1.2	1.8	1.4
Return on assets2	6.2%	6.2%	6.1%	5.5%	6.9%	9.1%
Return on stockholders equity2	16.9%	15.6%	15.0%	15.8%	18.6%	28.1%
1Risk Management Associations 2013/2018 Annual Statement Studies: Financial Ratio Benchmarks, NCAIS 315280. 2Based on income before taxes rather than net income.