please help with answers E and F.

Computron Industries underwent an expansion program at the end of 2015. A large loss occurred in 2016, rather than the expected pront. As a result, its managers, directors, and investors are concerned about the firm's survival. You were brought in as assistant to computron's chairman, who has the task of getting the company back into a sound financial position. You 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 answer the following questions, using the recent and proiected financial information shown below. Your answers must have clear explanations, not yes or no answers. Balance Sheets Assets 2015 2016 2017E Cash $9,000 $7,282 $14,000 Short-Term Investments. 48,600 20,000 71,632 Accounts Receivable 351,200 632,160 878,000 Inventories 715,200 1,287,360 1,716,480 Total Current Assets $ 1,124,000 $1,946,802 $ 2,680,112 Gross Fixed Assets 491,000 1,202,950 1,220,000 Less: Accumulated Depreciation 146,200 263,160 383,160 Net Fixed Assets $ 344,800 $ 939,790 $ 836,840 Total Assets $ 1,468,800 $ 2,886,592 $3,516,952 Liabilities And Equity 2013 Accounts Payable $145,600 Notes Payable 200,000 Accruals 136,000 Total Current Liabilities $ 481,600 Long-Term Debt 323,432 Common Stock (100,000 Shares) 460,000 Retained Earnings 203,768 $ 663,768 Total Liabilities And Equity $1,468,800 2014 2015e $324,000 $359,800 720,000 300,000 284,960 380,000 $1,328,960 $ 1,039,800 1,000,000 500,000 460,000 1,680,936 97,632 296,216 $ 557,632 $ 1,977,152 $2,886,592 $ 3,516,952 Total Equity Income Statements 2015 2016 2017E Sales $ 3,432,000 $ 5834 400 $ 7,035,600 COGS except depr. 2,864,000 4.980.000 5,800,000 Depreciation 18,900 116.960 120,000 Other Expenses 340,000 720.000 612.960 Total Operating costs $ 3,222,900 $ 5,816,960 $ 6,532,960 EBIT Interest Expense EBT Taxes (40%) Net Income $ 209,100 62.500 $ 146,600 58,640 $ 87,960 $ 17,440 $ 502,640 176,000 80,000 $ (158,560) $ 422,640 (63,424) 169,056 $ (95,136) $ 253,584 Other Data Stock Price Shares Outstanding EPS DPS Tax Rate Book Value Per Share Lease Payments 2015 2016 2017E $8.50 $ 6.00 $ 12.17 100,000 100,000 250,000 $ 0.880 $ (0.951) $ 1.014 $ 0.220 $ 0.110 $ 0.220 40% 40% 40% $ 6.638 $ 5.576 $ 7.909 $ 40,000 $ 40,000 $ 40,000 Industry Average 2.7 1.0 6.1 32.0 7.0 2.5 32.0% 50.0% Ratio Analysis 2015 2016 2017E Current 2.3 1.5 2.58 Quick 0.8 0.5 0.93 Inventory Turnover 4.0 4.0 3.45 Days Sales Outstanding 37.4 39.5 45.5 Fixed Assets Turnover 10.0 6.2 8.41 Total Assets Turnover 2.3 2.0 2.00 Debt Ratio 35.6% 59.6% 22.7% Liabilities/Assets Ratio 54.8% 80.7% 43.8% TIE 3.3 0.1 6.3 EBITDA Coverage 2.6 0.8 5.5 Profit Margin 2.6% -1.6% 3.6% Basic Earning Power 14.2% 0.6% 14.3% ROA 6.0% -3.3% 7.2% 13.3% -17.1% 12.8% Price/Earnings (P/E) 9.7 -6.3 12,0 12.0 Price/Cash Flow 8.0 27.5 8.1 Market/Book 1.3 1.1 1.5 6.2 8.0 3.6% 17.8% 9.0% 17.9% 16.2 ROE 7.6 2.9 a. Why are ratios useful? What three groups use ratio analysis and ful? What three groups use ratio analysis and for what reasons? Answer: b. Calculate the 2017 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company's liquidity position in 2015, 2016, and as projected for 2017? We often think of a roiected for 2017? We often think of ratios as being useful (1) to managers to help run the business, (2) to bankers for credit a stockholders for stock valuation. Would these different types of analysts have an equal interest in the liquidity ratios? Answer: C. Calculate the 2017 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron's utilization of assets stack up against other firms in its industry? Answer: d. Calculate the 2017 debt ratio, liabilities-to-assets ratio, times-interest-earned, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios? Answer: e. Calculate the 2017 profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can you say about these ratios? Answer: f. Calculate the 2017 price/earnings ratio, price/cash flow ratios, and market/book ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company