Consider the following condensed financial statements of Freedom comma Inc. The$$ company's target rate of return is $20\%$:

Data table

Freedom, Inc.

Comparative Balance Sheet

As of December $31,2024$ and $2023$

$2024$

$2023$

Assets

Cash

$$69,000$

$$57,000$

Accounts Receivable

$54,200$

$22,800$

Supplies

$5,800$

$5,200$

Property, Plant, and Equipment, net

$312,000$

$215,000$

Patents, net

$145,000$

$114,000$

Total Assets

$$586,000$

$$414,000$

Liabilities and Stockholders' Equity

Accounts Payable

$$22,000$

$$24,000$

Short$-$term Notes Payable

$141,000$

$47,000$

Long$-$term Notes Payable

$189,000$

$119,500$

Common Stock, no Par

$217,000$

$217,000$

Retained Earnings

$17,000$

$6,500$

Total Liabilities and Stockholders' Equity

$$586,000$

$$414,000$

Data table

Freedom, Inc.

Income Statement

For the Year Ended December $31,2024$

Net Sales Revenue

$$4,500,000$

Cost of Goods Sold

$2,300,000$

Gross Profit

$2,200,000$

Operating Expenses

$1,750,000$

Operating Income

$450,000$

Other Income and $($Expenses$)$:

Interest Expense

$(41,000)$

Income Before Income Tax Expense

$409,000$

Income Tax Expense

$143,150$

Net Income

$$2$Requirements

$1.$

Calculate the$$ company's ROI. Round all of your answers to four decimal places.

$2.$

Calculate the$$ company's profit margin ratio. Interpret your results.

$3.$

Calculate the$$ company's asset turnover ratio. Interpret your results.

$4.$

Use the expanded ROI formula to confirm your results from Requirement $1.$ Interpret your results.

$5.$

Calculate the$$ company's RI$.$ Interpret your results.

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$$ company's ROI. $($Round your calculations to four decimal places and enter your final to the nearest hundredth of a$$ percent, X$.$XX$\%)$

$$

Requirement $2.$ Calculate the$$ company's profit margin ratio. Interpret your results.  

 

Begin by selecting the formula to calculate profit margin$$ ratio, and then enter the amounts to calculate the$$ company's profit margin ratio. $($Enter your final to the nearest hundredth of a$$ percent, X$.$XX$\%)$

$$

Profit margin ratio

$$