for B it is talking about the red underlined numbers. those are the ratios i had calculated prior in part A.

b. Based on these numbers, what do you see as the main problem with this company. Obviously, the ROE is lower, but what is causing this to be the case. Be sure to explain any specific ratios which led you to your conclusion and what steps you can take to fix the problem (14 points) c. Prior year (beginning) net working capital was $175,100 and prior year (beginning) fixed assets were $550,600. Use this information to calculate cash flow from assets. Hint: this is the first of the two ways we learned to calculate cash flow from assets. I have given you the beginning numbers so you don't have to calculate them. (12 points) d. Analyze your cash flow from asset calculation. Identify what the components mean and whether you feel management is making the right decision in light of the ratios analysis you conducted above. (8 points) Income Statement Balance Sheet $2,218,500 $144,100 Sales Cost of Goods Sold $160,000 Cash Accounts Receivable $1,012,400 $169,800 $35,500 $1,206,100 $145,000 Gross Profit Selling & Admin. Exp. $195,500 Inventory Current Assets $458,900 $200,000 $806,000 $100,000 Depreciation Fixed Assets $575,300 Accounts Payable Notes Payable Current Liabilities Long-Term Debt Total Liabilities Par & APIC Common Stock Retained Earnings Total Equity Total Liabilities & Equity $395,500 $300,100 $350,000 EBIT Interest Expense Taxable Income $78,000 $288,700 $222,100 $638,700 Taxes Net Income Total Assets $69,000 $153,100 $1,034,200 $1,034,200 Company Company Average Peer Averages 2.35 2.80 1.61 2.50 2.00 2.30 .31 0.50 0.60 .54 Current Ratio Quick Ratio Debt/Equity Ratio Gross Profit Margin Inventory Turnover Selling & Admin. Expense /Gross Net Profit Margin 60.00% 59.0096 6.95 7.75 7.95 1 66.83% 67.00% 66.50% 66.83% .07 7.50% 7.25% 2.15 2.44 2.50 /Gross Net Profit Margin Asset Turnover Equity Multiplier ROE DIO 1.62 1.50 .24 27.39% 52.28 45.50 1.60 29.00% 45.00 27.00 60.00 12.00 DSO 27.94 DPO 57.68 28.00 58.00 15.50 CCC 22.54