please help with 5.5

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 Averages 2016 Financial Ratios 2014 2015 2016 Current ratio 1.71X 1.65X 1.70X 0.95X 65 days Quick ratio 0.92X 0.89X 60 days 60 days 3.90X Average collection period Inventory turnover 4.20X 4.50X Fixed asset turnover 3.20X 3.00X 3.33X 1.35X 1.37X Total asset turnover 1.40X Debt ratio 59.20% 61.00% 60.00% Times interest earned 4.20X 3.70X 4.75X Gross profit margin Operating profit margin Net profit margin Return on total assets 25.00% 23.00% 22.50% 12.50% 12.70% 12.50% 6.10% 6.00% 6.50% 8.91% 8.54% 8.10% 20.93% Return on equity 20.74% 22.28% Income Statement for Year Ended 12/31/16 Balance Sheet at 12/31/16 $ 125,000 Sales $1,500,000 Cash Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Earnings before tax Income tax (40%) Accounts receivable 275,000 1,200,000 $ 300,000 Inventory Current assets 325,000 $ 725,000 $ 420,000 $1,145,000 S 150,000 100,000 $ 200,000 Fixed assets (net) 72,000 Total Assets 128,000 Accounts payable Notes payable Accrued liabilities 51,200 $ 76,800 225,000 Net Income 100,000 475,000 Current liabilities Long-term debt Total liabilities 400,000 $ 875,000 Equity Total liabilities and equity 270,000 $1,145,000 Question 5.5 - Using the information in the problem provided on page 250, you will need to calculate the ratios for 2016 for Eleanor's Computers, a retailer of computer products, and answer multiple choice questions analyzing the ratios and identifying potential problems and possible causes of the problems. a. Current ratio b. Quick ratio c. Average collection period d. Inventory turnover e. Fixed asset turnover f. Total asset turnover g. Debt ratio h. Times interest earned i. Gross profit margin j. Operating profit margin k. Net profit margin I. Return on total assets m. Return on Equity n- r. Multiple choice questions analyzing the ratios including identifying potential problems and explanations of possible causes of the problems