Required information

Exercise 7-21 Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7)

[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	59,900
Accounts Receivable		27,400
Allowance for Uncollectible Accounts					$	3,400
Inventory		37,500
Notes Receivable (5%, due in 2 years)		26,400
Land		167,000
Accounts Payable						16,000
Common Stock						232,000
Retained Earnings						66,800
Totals	$	318,200			$	318,200

During January 2021, the following transactions occur:

January		1		Purchase equipment for $20,700. The company estimates a residual value of $2,700 and a six-year service life.
January		4		Pay cash on accounts payable, $10,700.
January		8		Purchase additional inventory on account, $94,900.
January		15		Receive cash on accounts receivable, $23,200.
January		19		Pay cash for salaries, $31,000.
January		28		Pay cash for January utilities, $17,700.
January		30		Sales for January total $232,000. All of these sales are on account. The cost of the units sold is $121,000.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $4,200 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.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,800.
5. Accrued income taxes at the end of January are $10,200.

Exercise 7-21 Part 7

7. Analyze how well TNT Fireworks manages its assets:

Requirement 1:

a-1. Calculate the return on assets ratio for the month of January. Requirement 2: b-1. Calculate the profit margin for the month of January.

Requirement 3: c-1. Calculate the asset turnover ratio for the month of January.

Net income is $12500

Net Sales is $232000

Total assets for the period are $455500

I just need help finding average total assets and I am not sure how I do it.