Eleanor?s computers is a retailer of computer products. Using the fianancial datate provided, complete the financial ratio calculations for 2016. Advise management of any ratios wthat indicate potential problems and provide an explanation of possible causes of the problems.

Eleanor's computers is a retailer of computer products. Using the fianancial datate provided, complete the financial ratio calculations for 2016. Advise management of any ratios wthat indicate potential problems and provide an explanation of possible causes of the problems. Financial Ratios 2014 2015 Current ratio Quick ratio Average collection period Inventory turnover Fixed asset turnover Total asset turnover Debt Ratio Times interest earned Gross profit margin Operating profit margin Net profit Margin Return on total assets Return on equity 1.71x 0.92x 60 days 4.20x 3.20x 1.40x 59.20% 4.20x 25.00% 12.50% 6.10% 8.54% 20.93% 1.65x 0.89x 60 days 3.90x 3.33x 1.35% 61.00% 3.70x 23.00% 12.70% 6.00% 8.10% 20.74% 2016 Industry Averages 2016 1.70x 0.95x 65 days 4.50x 3.00x 1.37x 60.00% 4.75x 22.50% 12.50% 6.50% 8.91% 22.28% Income Statement for Year Ended 12/31/16 Balance Sheet at 12/31/16 -_____________________________________________________________________________________________ Sales Cost of Goods sold Gross profit Operating Expenses Operating Profit Interest expense Earnings before tax Income Tax(40%) Net Income $1,500,000 1,200,000 $300,000 100,000 $200,000 72,000 128,000 51,200 $76,800 Cash $ 125,000 Accts. Receivable 275,000 Inventory 325,000 Current Assets $ 725,000 Fixed assets(net) $420,000 Total assets $1,145,000 Accounts payable 150,000 Notes payable225,000 Accured liabilities 100,000 Current liabilities 475,000 Long-term debt 400,000 Total liabilities $875,000 Equity 270,000 Total liabilities/equity $1,145,000