Raquel Fernandez 3 AaBb Ccc AaBbCcl AaBbCcl AaB Ccl Aa Bbcc) daBbCck dabbccl AABBCC AABBCC Subtitle Subtle Em... Emphasis Intense E.. Strong Quote Intense ... Subtle Ref... Intense Re Styles Part II 5.5 Eleanor's Computers is a retailer of computer products. Using the financial data provided, 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. 2016 Financial Ratios 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 1.53X 0.84X 67 Days 3.69X 3.57X 1.31% 76.42% 1.07X 20.00% 13.33% 5.12% 6.71% 28.44% @camping fax + 69208/2/4/12/10/2/2/2/200:90,3 Financial Ratios 2014 2015 2016 2015 Current rabo 171X 1.65X 170 Quick ratio 0.92x 0.89X 0.95% Average collection period 60 days so days 55 days Inventory turnover 4. 20 3.90x 4.50X Fixed asset turnover 3.20 3.33% 3.00X Total asset turnover 1.40X 1.35X 1.37% Debt ratio 59 20% 61,00% 60.00% Times Interest earned 4.20% 3.700 4.75X Gross profit margin 2500% 23.00% 22 50N Operating profit margin 12 50% 12.70% 12 SON Net profit margin 6.10% 6.00% Return on total assets 8.54% 8.10% 891 Return on equity 20.93% 20.74% 22 200 Income Statement for Year Ended 12/31/16 Balance Sheet at 12/31/18 $1,500,000 Sales Cash 5 125 000 275.000 Cost of goods sold Accounts receivable 1.200.000 Gross pront $300.000 Inventory $725.000 Raquel Fernandez 3 AaBb Ccc AaBbCcl AaBbCcl AaB Ccl Aa Bbcc) daBbCck dabbccl AABBCC AABBCC Subtitle Subtle Em... Emphasis Intense E.. Strong Quote Intense ... Subtle Ref... Intense Re Styles Part II 5.5 Eleanor's Computers is a retailer of computer products. Using the financial data provided, 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. 2016 Financial Ratios 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 1.53X 0.84X 67 Days 3.69X 3.57X 1.31% 76.42% 1.07X 20.00% 13.33% 5.12% 6.71% 28.44% @camping fax + 69208/2/4/12/10/2/2/2/200:90,3 Financial Ratios 2014 2015 2016 2015 Current rabo 171X 1.65X 170 Quick ratio 0.92x 0.89X 0.95% Average collection period 60 days so days 55 days Inventory turnover 4. 20 3.90x 4.50X Fixed asset turnover 3.20 3.33% 3.00X Total asset turnover 1.40X 1.35X 1.37% Debt ratio 59 20% 61,00% 60.00% Times Interest earned 4.20% 3.700 4.75X Gross profit margin 2500% 23.00% 22 50N Operating profit margin 12 50% 12.70% 12 SON Net profit margin 6.10% 6.00% Return on total assets 8.54% 8.10% 891 Return on equity 20.93% 20.74% 22 200 Income Statement for Year Ended 12/31/16 Balance Sheet at 12/31/18 $1,500,000 Sales Cash 5 125 000 275.000 Cost of goods sold Accounts receivable 1.200.000 Gross pront $300.000 Inventory $725.000
