As Speedy begins its journey into these new business ventures, Samantha Sharp, Speedys Certified General Accountant, needs to re-examine the financials in order to re-assess the monetary health of the business.

Our return on equity last year was 96.1% and the average return on equity for our industry is 85.4%, with our top two competitors at 88.9%. Our inventory has slowed down slightly given we trended, on average, in the past 5 years at 62.7 days. I think this tells you about our warehouse. Our Short-Term Solvency has remained consistent, but our Long-Term is up 0.11 from last year and up 0.13 from two years ago. Industry average for return on sales is trending at 25.1%. We need to go over these figures because I am

Calculate Speedys Return on Sales. Based on the guidelines in the textbook and the companys 2018 value of 24.3% and 2019 value of 24.9%, how would you assess the companys 2020 value?

Revenue (Gross Sales) $ 3,413,060.00 Cost of Goods Sold: Merchandise Inventory: Jan 1st, 2020 Merchandise Purchases Goods Available for Sale 91,450.00 515,585.00 $ 607,035.00 [M] $ 88,810.00 Merchandise Inventory: Dec 31st, 2020 Total Cost of Goods Sold $ 518,225.00 IN GROSS PROFIT $ 2,884,835.00 $ 1,115,000.00 28,220.00 Operating Expenses: Salaries and Wages Advertising Shipping and Transportation Depreciation: Warehouse & Product Repairs Total Selling and Shippping Expenses $ 34,870.00 31,110.00 $ 1,209,200.00 [P] Merge 460,222.00 12,245.00 33,535.00 Administration Expenses: Salaries and Wages Supplies Utilities Depreciation: Office Equipment Interest Expenses Miscellaneous Expenses/Business Meetings Total Administration Expenses 11,700.00 28,880.00 15,220.00 is_561,802.001101 TOTAL OPERATING EXPENSES $ 1,771,022.00 [R] Operating Income (Income Before Taxes) Income Taxes (Cumulative) $ $ 1,113,813.00 [S] 292,197.00 NET INCOME (FINAL) $ 821,616.00 T