Consider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 12% and its WACC is 9%:

Requirements
1. Calculate the company's profit margin. Interpret your results.
2. Calculate the company's asset turnover. Interpret your results.
3. Use the expanded ROI formula to confirm your results from Requirement 1.
Interpret your results.
4. Calculate the company's RI. Interpret your results.
5. Calculate the company's EVA. Interpret yourresults.

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SECURE LIFE, INC. Comparative Balance Sheet As of December 31, 2013 and 2012 2013 2012 Assets $ 82,000 $ 50,000 Cash Accounts receivable 54,000 20,500 500 Supplies 1,000 180,000 Property, plant, and equipment, net 275,000 138,000 Patents, net 99,000 Total assets $550,000 $350,000 Liabilities and Stockholders' Equity $ 32,000 $ 40,000 Accounts payable Short-term notes payable 135,000 45,000 Long-term notes payable Common stock, no par 170,000 125,000 150,000 130,000 Retained earnings 55,000 18,000 Total liabilities and stockholders' equity $350,000 $550,000 SECURE LIFE, INC. Income Statement For the Year Ended December 31, 2013 $6,7 50,000 3,200,000 $3,550,000 Sales revenue COGS Gross profit Operating expenses Operating income Other: Interest expense 1,525,000 $2,025,000 (17,000) Income before income tax expense $2,008,000 Income tax expense (702,800) Net income $1,305,200