Jenny Cochran was brought in as assistant to Computron's chairman, who had the task of getting the company back into a sound financial position. Cochran must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions. Provide clear explanations, not yes or no answers. Use the recent and projected financial information shown next.

Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Net xed assets Total assets Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Longterm bonds Total liabilities Common stock (100,000 shares) Retained earnings Total common equityr Total liabilities and equity $2,730 2019 2010E $3,200 2018 2019 2020E Net sales $5,500 $6,000 $6,600 Cost of goods sold (excluding depr.) 4,300 4,800 5,210 Depreciation 290 320 370 Other operating expenses 350 420 400 Earnings before interest and taxes (EBIT) $ 560 460 $ 620 Less interest 68 108 100 Pre-tax earnings 492 352 520 Taxes (25%) 123 88 130 Net income $ 369 $ 264 390Industry Ratio 2018 2019 2020E Average Profit margin 6.7% 4.4% 7.2% Operating profit margin 10.2% 7.7% 10.4% Basic earning power 13.7% 9.4% 15.6% ROA 9.0% 5.4% 10.8% ROE 13.5% 9.1% 15.4% Inventory turnover 7.4 6.2 9.0 Days sales outstanding 26.5 31.6 28.0 Fixed assets turnover 1.9 1.7 3.0 Total assets turnover 1.348 1.224 1.5 Current 2.1 1.6 2.5 Quick 1.0 0.7 1.4 Debt ratio 20.8% 27.6% 15.0% Debt-to-equity ratio 0.31 0.46 0.22 Liabilities-to-assets ratio 33.1% 40.6% 30.0% Earnings multiplier 1.5 1.7 1.5 TIE 8.2 4.3 13.0 EBITDA coverage 9.9 6.3 17.2 Price/earnings (P/E) 13.6 11.4 16.8 Market/book 1.8 1.0 2.6