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T&T had a great year, but they need to meet targets set by the banker, Huaweii Bank Inc. They had been

informed by their account manager that they have been picked to be audited and that the Chief Lending Officer Menghan Wazhunn will personally review their financial statements. Trump and Trudeau are nervous so in preparation of the meeting they are bringing in their accounting firm G20 to make sure all the ratios are in line, and specifically the margin, the turnover and ROI. They also need to make sure the minimum required rate of return which was set at 15% was met.

G20 has sent in Putnov Elections to ensure all the ratios are in line, the following are the financial statements at year end January 31, 2019 for T&T Inc.


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margin ratio , turnover and ROI


Please help me to solve this question, show me the detail, thanks !

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Trump & Trudeau Inc.
Balance Sheet
Ending
Beginning
Balance
Balance
Assets
Cash
$1,200,000
$1,400,000
Accounts receivable
1,530,000
1,450,000
Inventory
1,380,000
1,320,000
Plant and equipment, net
3,620,000
3,680,000
Investment in Brexit Sunk Inc.
280,000
250,000
Land (undeveloped)
370,000
380,000
Total assets
$8,380,000
$8,480,000
Liabilities and Shareholders' Equity
Operating Line
$1,310,000
$1,360,000
Accounts payable
$1,700,000
$1,800,000
Current Portion of Long-Term Debt
$500,000
$470,000
Long-term debt
2,580,000
2,690,000
Shareholders' equity
2,290,000
2,160,000
Total liabilities and shareholders' equity
$8,380,000
$8,480,000
Trump & Trudeau Inc.
Income Statement
Sales
$40,500,000
Less operating expenses
36,450,000
Net operating income
$4,050,000
Less interest and taxes:
Interest expense
$350,000
Tax expense
350.000
700,000
Net income
$3,350,000
Dividends paid last year
$1,500,000
Minimum required return
15%

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