80 Part 1: The Entrepreneurial Environment 9. [Ratio Calculations] Ricardo Martinez, the founder of Martinez Products Corporation (see Problem 8), projects sales to double to $400,000 in the second year of operation. A. If the financial ratios calculated for Year 1 in Problem 8 remain the same in Year 2, what would be Martinez's dollar amount projections in his business plan for (a) gross profit, (b) net profit or in- come, and (c) total assets? to be 60 percent, the net profit margin 25 percent, and the asset intensity at five times turnover? age rate of ROA. B. How would your answers change in Part A if the gross profit margin in the second year is projected C. Use the projected ratio information in Part B in the ROA model to determine the projected percent- MINICASE LearnRite.com Corporation LearnRite.com offers e-commerce service for children's edutainment products and services. The word edutainment is used to describe software that combines educational and entertainment components Valuable rduct information and dotailad 80 Part 1: The Entrepreneurial Environment 9. [Ratio Calculations] Ricardo Martinez, the founder of Martinez Products Corporation (see Problem 8), projects sales to double to $400,000 in the second year of operation. A. If the financial ratios calculated for Year 1 in Problem 8 remain the same in Year 2, what would be Martinez's dollar amount projections in his business plan for (a) gross profit, (b) net profit or in- come, and (c) total assets? to be 60 percent, the net profit margin 25 percent, and the asset intensity at five times turnover? age rate of ROA. B. How would your answers change in Part A if the gross profit margin in the second year is projected C. Use the projected ratio information in Part B in the ROA model to determine the projected percent- MINICASE LearnRite.com Corporation LearnRite.com offers e-commerce service for children's edutainment products and services. The word edutainment is used to describe software that combines educational and entertainment components Valuable rduct information and dotailad