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| The accounting staff of CCB Enterprises has completed the preparation of financial statements for the 2005 calendar year. The Statement of Income for the current year and the Comparative Statement of Financial Position for 2005 and 2004 are reproduced below. The accounting staff calculates selected financial ratios after the financial statements are prepared. Average balance sheet account balances are used in computing ratios involving income statement accounts. Ending balance sheet account balances are used in computing ratios involving only balance sheet items. The ratios have not been calculated for 2005. Financial ratios that were calculated for 2004 and their respective values are as follows.     Questions A. Explain how the use of financial ratios can be advantageous to management. B. Calculate the following financial ratios for 2005 for CCB Enterprises (round your answer to three decimal places): 1. times interest earned. 2. return on total assets. 3. return on operating assets. 4. return on common stockholders’ equity. 5. total debt ratio. 6. total debt/equity ratio. 7. current ratio. 8. quick (acid test) ratio. |