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%

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?

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2011 2010 2009 2003 2007Select 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 profit 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 2.1Quick ratio (Acid test} 1.6 1.3 1.5 1.4 1.3Average collection period 33.2 days 35.6 clays 31.3 clays 3?.6 clays 40.9 claysInventory tumover [based on sales) 5.1 times 5.4 times 2.0 times 6.2 times 6.6 timesDebt-to—equity 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, 2003—2009, 2009—2010r 2010-2011, and 2011-2012 editions, SIC 2329.