5.5. Eleanor's Computers is a retailer of computer products. Using the financial data pro- vided, complete the financial ratio calculations for 2016. Advise management of any ratios that indicate potential problems and provide an explanation of possible causes of the problems Industry Avera Financial Ratios 2014 2015 2016 201 1.70X 0.95X 65 days 4.50X Current ratico Quick ratio Average collection period Inventory turnover Fixed asset turnover Total asset turnover Debt ratio Times interest earned Gross profit margin Operating profit margin 1.71X 0.92X 60 days 4.20X 3.20X 1.40X 59.20% 4.20X 25.00% 12.50% 6.10% 854% 20.93% 1.65X 0.89X 60 days 3.90X 3.33X 1.35X 61.00% 3.70X 23.00% 12.70% 6.00% 8.10% 20.74% 1.37X 600% 4.75X 22.50% 12.50% 6.50% 8.91% 22.28% Net profit margin Return on total assets Return on equity Net profit margin Return on total assets Return on equity 6.10% 8.54% 20.93% 60% 8.10% 20.74% 63% 8.91% 22.28% Income Statement for Year Ended 12/31/16 Balance Sheet at 12/31/16 $1,500,000 Cash Sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Earnings before tax Income tax (40%) Net Income 125,000 275,000 325,000 725,000 $ 420,000 $1,145,000 $150,000 225,000 100,000 475,000 400,000 $875,000 270,000 $1,145,000 1,200,000 Accounts receivable 300,000 Inventory 100,000 $ 200,000 Current assets Fixed assets (net) 72,000 Total Assets Accounts payable Notes payable 128,000 51,200 $ 76,800 Accrued liabilities Current liabilities Long-term debt Total liabilities Equity Total liabilities and equity