Eleanor’s Computers is a retailer of computer products. Using the financial data provided, complete the financial ratio calculations for 2024. Advise management of any ratios that indicate potential problems and provide an explanation of possible causes of the problems.

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Industry Averages Financial Ratios Current ratio 2022 2023 2024 2024 1.71X 1.65X 1.70X Quick ratio 0.92X 0.89X Average collection period 60 days 60 days Inventory turnover 4.20X 3.90X 0.95X 65 days 4.50X Fixed asset turnover 3.20X 3.33X 3.00X Total asset turnover 1.40X 1.35X 1.37X Debt ratio 59.20% 61.00% 60.00% Times interest earned 4.20X 3.70X 4.75X Gross profit margin 25.00% 23.00% 22.50% Operating profit margin 12.50% 12.70% 12.50% Net profit margin 6.10% 6.00% 6.50% Return on total assets 8.54% 8.10% 8.91% Return on equity 20.93% 20.74% 22.28% Income Statement for Year Ended 12/31/24 Balance Sheet at 12/31/24 Sales $1,500,000 Cash Cost of goods sold 1,200,000 Accounts receivable Gross profit $ 300,000 Inventory Operating expenses 100,000 Current assets Operating profit $ 200,000 Interest expense Earnings before tax 72,000 128,000 Income tax (40%) Net Income 51,200 $ 76,800 $ 125,000 275,000 Fixed assets (net) Total Assets Accounts payable Notes payable Accrued liabilities Current liabilities Long-term debt 325,000 $ 725,000 $ 420,000 $1,145,000 $ 150,000 225,000 100,000 475,000 400,000 Total liabilities $875,000 Equity 270,000 Total liabilities and equity $1,145,000