LET Companys financial results for the past two years follow. Required 1. Compute the companys profit margin,

LET Company’s financial results for the past two years follow.

Required
1. Compute the company’s profit margin, asset turnover, and return on investment for this year and last year. Beginning total assets for last year were $160,000. (Round percentages to two decimal places.)
2. The desired return on investment for the company has been set at 10 percent. Compute LET’s residual income for this year and last year.
3. The cost of capital for the company is 5 percent. Compute the company’s economic value added for this year and last year.
4. Before drawing conclusions about this company’s performance, what additional information would youwant?

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LET Company Balance Sheet December 31 This Year Last Year Assets Cash Accounts receivable Inventory Other current assets Plant assets Total assets S 9,000 40,000 30,000 1,000 120,000 $200,000 $ 4,000 50,000 25,000 1,000 100,000 180,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Liabilities and Stockholders' Equity 10,000 20,000 170,000 $200,000 10,000 10,000 160,000 180,000 LET Company Income Statement For the Years Ended December 31 This Year $247,000 (150,000) Last Year 204,000 Sales Cost of goods sold Selling and administrative expenses Operating income Income taxes After-tax operating income (115,000) S 69,160 20,160 5 49,000 (2740) (17,600) 71400 29,400 S 42,000