Need help figuring out the ratios. I attached all the other statements that are all correct, just need see how the ratios are done. The net income number currently in there is not correct.

! Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (L07-4, 7-7) (The following information applies to the questions displayed below.) On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 60,400 28,400 $ 3,900 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 38,000 32,400 172,000 16,500 237,000 73,800 $331,200 $331,200 During January Year 1, the following transactions occur: January 1 Purchase equipment for $21,200. The company estimates a esidual value of $3,200 and a four-year service life. January 4 Pay cash on accounts payable, $11,200. January 8 Purchase additional inventory on account, $99,900. January 15 Receive cash on accounts receivable, $23,700. January 19 Pay cash for salaries, $31,500. January 28 Pay cash for January utilities, $18,200. January 30 Sales for January total $237,000. All of these sales are on account. The cost of the units sold is $123,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,700 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $34,300. e. Accrued income taxes at the end of January are $10,700. Requirement 1: a-1. Calculate the return on assets ratio for the month of January Return on Assets Ratio Return on Assets Ratio Choose Numerator Choose Denominator Net Income - Average Total Assets $ 24,870 - Return on assets a-2. If the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies in the same industry? More profitable Less profitable Requirement 2: b-1. Calculate the profit margin for the month of January Choose Numerator Not Income $ 24,870 Profit Margin Choose Denominator Net Salos Profit Margin Profit Margin 0 b-2. If the industry average profit margin is 4%, is the company more or less efficient at converting sales to profit than other companies In the same Industry? More efficient O Less efficient Requirement 3: c-1. Calculate the asset turnover ratio for the month of January Asset Turnover Ratio Choose Denominator Average Total Assets Choose Numerator Net Sales Asset Turnover Ratio Asset Turnover 0 times Exercise 7-21B Part 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. $ 113,500 Multiple-Step Income Statement For the month ended January 31, Year 1 Sales Revenue $ 237,000 Cost of Goods Sold (123,500) Gross Profit Expenses Salaries Expense 65,800 Utilities Expense 18,200 Depreciation Expense (375) Bad Debt Expense (5,560) Total Operating Expenses Operating Income Interest Revenue 78,065 35,435 135 Income before taxes Income Tax Expense Net Income 35,570 (10,700) 24,870 $ Exercise 7-21B Part 5 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus sign.) Balance Sheet January 31, Year 1 Assets Liabilities Cash $ Accounts Receivable 2,000 Accounts Payable 241,700 Income Tax Payable (9,460) Salaries Payable 14,400 $ 105,200 10,700 34,300 Less: Allowance Inventory Interest Receivable 150,200 Total Current Assets Land Equipment Notes Receivable 135 Total Current Liabilities 248,775 Stockholder's Equity 172,000 (Common Stock 21,200 Retained Earnings 32,400 237,000 86,800 Less: Accumulated Depreciation (375) $ 474,000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 323,800 $ 474,000 Total Assets Exercise 7-21B Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 31 Sales Revenue 237,000 135 Interest Revenue Retained Earnings 237,135 2 January 31 224,135 375 Retained Earnings Depreciation Expense Bad Debt Expense Utilities Expense Salaries Expense Income Tax Expense 5,560 18,200 65,800 10,700 123,500 Cost of Goods Sold