Chapter 9 Homework Question

\f2024 2023 Assets Cash 76,000 $ 62,000 Accounts Receivable 61,400 26,800 Supplies 600 200 Property, Plant, and Equipment, net 305,000 204,000 Patents, net 163,000 101,000 Total Assets $ 606,000 $ 394,000 Liabilities and Stockholders' Equity Accounts Payable $ 29,000 $ 31,000 Short-term Notes Payable 148,000 52,000 Long-term Notes Payable 196,000 126,500 Common Stock, no Par 205,500 169,000 Retained Earnings 27,500 15,500 Total Liabilities and Stockholders' Equity $ 606,000 $ 394,000\fInc' The company's target rate of return is 30%: lick the icon to view the income statement.) Consider the following condensed nancial statements of Safe Mone a (Click the icon to View the comparative balance sheet.) Requirement 1. Calculate the company's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate the company's ROI. (Round your calculations to four decimal places and enter your nal to the nearest hundredth of a percent, X.XX%) + = ROI 4- = Requirement 2. Calculate the company's prot margin ratio. Interpret your results. Begin by selecting the formula to calculate prot margin ratio, and then enter the amounts to calculate the company's prot margin ratio. (Enter your nal to the nearest hundredth of a percent, X.XX%) + = Prot margin ratio + = % for every dollar of The company's prot margin ratio tells us that they earn of Requirement 3. Calculate the company's asset tumover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate the company's asset turnover ratio. + = Asset turnover ratio The company's asset turnover ratio explains how efciently a company uses its to generate . The company is generating of with every $1.00 of Requirement 4. Use the expanded ROI formula to conrm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. x ROI Using the expanded formula, the ROI for Safe Money, Inc. is %. To determine what is driving a company's ROI, management often restates the ROI equation in its expanded form. The ROI calculated with the expanded formula |