Consider the following condensed financial statements of Money Freedom, Inc. The company's target rate of return is 20%: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) Read the requirements. 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, XXX%%) ROI Requirement 2. Calculate the company's profit margin ratio. Interpret your results. Data table 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, XXX%) Profit margin ratio 1% - X Money Freedom, Inc. Data table Comparative Balance Sheet The company's profit margin ratio tells us that they eam of for every dollar of As of December 31, 2024 and 2023 Money Freedom, Inc. 2024 2023 Requirement 3. Calculate the company's asset turnover ratio. Interpret your results. Income Statement Assets Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate the company's asset turnover ratio. For the Year Ended December 31, 2024 Cash 82,000 5 71,000 Net Sales Revenue $ 10,000,000 Accounts Receivable 61.600 27,500 = Asset turnover ratio Cost of Goods Sold 5,900,000 Supplies 400 500 Gross Profit 4.100.000 Property, Plant, and Equipment, net 299.000 197.000 The company's asset turnover ratio explains how efficiently a company uses its to generate Operating Expenses 3,800,000 Patents, net 158,000 103.000 The company is generating of with every $1.00 of Operating Income 300.000 Total Assets 601,000 $ 399,000 Other Income and (Expenses): Liabilities and Stockholders' Equity Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. Interest Expense 40,000) Accounts Payable 31,000 $ 33,000 First, select the expanded ROI formula. Income Before Income Tax Expense 260,000 Short-term Notes Payable 149,000 49,000 ROI Income Tax Expense 91.000 Long-term Notes Payable 199.000 129,000 Net Income 169,000 Common Stock, no Par 201,000 168,500 Using the expanded formula, the ROI for Money Freedom, Inc. is 7%. Retained Earnings 21,000 19,500 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 with the ROI calculated in Requirement 1. Requirement 5. Calculate the company's RI. Interpret your results. First, select the formula to calculate residual income (RI). = RI The RI for Money Freedom, Inc. is Money Freedom, Inc. is management's target rate of return