You had answered my question on ratio analysis and this is the feed back i got back from the teacher. Please assist me here

Teacher's feedback below:

thanks for sending this to me. I did get a chance to take a look at things and have some questions.

For your long-term debt ratio in question 11, double-check your work. The formula us Long Term Debt / (Long Term Debt + Total Equity).

For your inventory turnover ratio in 12, the formula is sales/inventory. Please take another look.

For 14, net working capital please take another look at the numbers you put into the formula. They are off a bit.

16 - Return on Sales = Net Income/Sales.

For numbers 19 and 20, I know it said answer Y/N. I just want to make sure you know why this is the case. Are there particular things that made you believe this from the numbers you calculated in this assignment? If so, what are they specifically? Can you share that?

Madhu S Mahat Fin 300 Ratio Analysis Assignment Background information and questions for Assignment B Rearrange this data into the Balance Sheet and P&L statement below. Place the data into these financial statements: Buildings 10,000 Mortgage 100 Cash 2,000 Accounts Payable 1,000 Short Term Loan 900 Accounts Receivable 500 Machinery & Equipment 1,800 Inventory 1,500 Long Term Loan 5,000 SG&A 150 Sales 3,000 Depreciation 30 Cost of Goods 2,100 Interest Expense 100 Taxes 200 Note for the financial statements below: (The calculations that need to be made are noted in BOLD on the statements) On the P&L Net Income must be calculated. On the Balance Sheet Shareholders' Equity, Total Current Assets & Fixed Assets, Total Current and Total Long Term Liabilities & Total Assets and Total Liabilities & Equity must be calculated. Use these answers to complete Answer Sheet for Review Test B in the Item below. You will also use these numbers to calculate the financial ratios in the online review test/assignment. BALANCE SHEET Cash Accounts Receivable Inventory Current Assets Buildings Machinery & Equipment Fixed Assets Total Assets Accounts Payable Short Term 500 Loan Current 1,500 Liabilities 2,000 4,000 Mortgage 900 1,900 100 10,000 Long Term Loan 5,000 1,800 Long Term Liabilities 5,100 Shareholders' Equity 8,800 11,800 Total 15,800 Liabilities & Equity P&L (aka Income Statement) Sales 3,000 Cost of Goods 2,100 Gross Margin (Gross Profit) SG&A Depreciation expenses Operating Profit Interest expense Taxes Net Income 1,000 900 150 30 720 100 200 420 15,800 Questions to answer (the same questions you will encounter when you open up your Assignment Manager (for P&L) to turn it in) Question 1 7 points What is the value of NET INCOME? 420 Question 2 5 points What is the value of CURRENT ASSETS? 4,000 Question 3 5 points What is the value of FIXED ASSETS? 11,800 Question 4 5 points What is the value of CURRENT LIABILITIES? 1,900 Question 5 5 points What is the value of LONG TERM LIABILITIES? 5,100 Question 6 5 points What is the value of SHAREHOLDERS' EQUITY? 8,800 Question 7 5 points What is the value of TOTAL LIABILITIES & EQUITY? 15,800 Question 8 4 points Using what you calculated so far what is the CURRENT RATIO? Current ratio = Current Assets/Current Liabilities =4,000/1,900 = 2.11 Question 9 4 points What is the QUICK or ACID TEST RATIO? Quick Ratio = (Cash+ Cash Equivalents+ Short-term investments)/ Current liabilities = (2,000+500)/1,900 = 1.32 Question 10 4 points What is the TOTAL DEBT RATIO? Total Debt Ratio = Total Liabilities/Total Assets = (1,900+5,100)/15,800 =0.44 Question 11 4 points What is the LONG TERM DEBT RATIO? Long term debt ratio = Long term liabilities/Total Assets =5,100/15,800 = 0.32 Question 12 4 points What is the INVENTORY TURNOVER RATIO? Inventory turnover ratio = Cost of goods sold/ Inventory =2,100/1,500= 1.4 Question 13 6 points What are the DAYS OF SALES IN RECEIVABLES? Days of sales in receivables = accounts receivable / average sales per day Assumption: 365 Days in a year =500/(3,000/365) = 60.83 Days Question 14 4 points What is the value of NET WORKING CAPITAL? Working Capital = current assets (cash, inventory, a/r) - current liabilities (a/p, short term debt) Net working capital is similar to working capital but removes the cash and debt consideration and simplifies the formula to a/r and inventory minus a/p. Net working capital = 500+1,500- 1,000 = 1,000 Question 15 4 points What is TOTAL ASSET TURNOVER? Total Asset Turnover = Sales/Total Assets =3,000/15,800 = 0.1898/18.98% Question 16 4 points What is this firm's RETURN ON SALES (ROS)? ROS = Operating Income/ Sales = =720/3,000 = 0.24/24% Question 17 4 points What is the firm's RETURN ON ASSETS? ROA = Net Income/Total Assets =420/15,800 = 0.0266/2.66% Question 18 4 points What is this firm's RETURN ON EQUITY? ROE= Net Income/ Shareholders Equity =420/8,800 = 0.0477/4.77% Question 19 9 points As a result of your analyses do you believe this is a firm that will stay in business? Please look at your results for all ratios in this case along with the ratio interpretation sheet I showed you in class. Then, simply answer YES or NO. YES Question 20 8 points From the limited amount of data and analysis is this is a "reasonably well run company" that is managing its finances well? Answer YES or NO YES