25. The Marketing manager for a digital newsletter is evaluating the new customer acquisition strategy for the upcoming year. A subscription costs $20 per year. Prospecting efforts are concentrated in 3 channels. The historical performance is provided below. total 180,000 $ Media costs customers acquired annual subscription retention rate podcast ad direct mail digital display $ 60,000 $ 80,000 $ 40,000 4,000 2,500 1,600 $ 20.00 $ 20.00 $ 20.00 50% 40% 30% Given this information how would you allocate the spending (assume same $180,000 spending as last year). Explain your rationale for your allocation. (5 points) Question 26 - calculate the ratios (9 points) Year End Balance Sheet Fill in each Ratio below Assets Cash Liabilities notes payable (loan) Accounts Payable Total Current Liabilities $ 130,000 $ 50,000 $ 40,000 $ 220,000 Accounts Receivable Inventory (material) Total Current Assets $ $ $ Ratios 33,000 50,000 83,000 1 Gross Profit margin % 2 Operating margin % plant and equipment less accum depreciation Total Assets $ 120,000 $ (40,000) $ 300,000 Total Liabilities $ 83,000 3 Net Profit margin % 4 Return on assets (ROA) % Owners Equity Shareholder equity Retained earnings Net income period Total Equity $ 165,000 $ 30,000 $ 22,000 $ 217,000 5 Return on shareholder Equity % 6 Debt to Equity Ratio Total Liabilities + Assets $ 300,000 7 Current Ratio 8 Quick Ratio 9 Asset Turnover Year End Income Statement Sales COGS Gross profit operating expenses Depreciation Operating income (EBIT) Interest Taxes Net Income $ 250,000 $ 135,000 $ 115,000 $ 50,000 $ 10,000 $ 55,000 $ 2,000 $ 7,000 $ 46,000