Consider the following condensed financial statements of Money Safe, Inc. The company's target rate of return is 30%; (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 ROl. 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 ROl. (Round your calculations to four decimal places and enter your final to the nearest hundredth of a percent, XXX%) ROI 196 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 The company's profit margin ratio tells us that they earm $ofD for every dollar of Requirement 3. Calculate the company's asset turnover 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 efficiently a company uses its to generate . The company is generating with every $1.00 of Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. ROI Using the expanded formula, the ROI for Money Safe, 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 Requirement 5. Calculate the company's RI. Interpret your results. First, select the formula to calculate residual income (RI) with the ROI calculated in Requirement 1. The RI for Money Safe, Inc. is $ Money Safe, Inc. is | management's target rate of return. Money Safe, Inc Income Statement For the Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Income and (Expenses) $ 6,000,000 3,700,000 2,300,000 2,000,000 300,000 Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income (34,000) 266,000 93,100 172,900 Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Assets Cash Accounts Receivable Supplies Property, Plant, and Equipment, net Patents, net Total Assets $ 76,000$ 62,000 26,800 200 305,000 204,000 163,000 101,000 $ 606,000 $ 394,000 61,400 600 Liabilities and Stockholders' Equity Accounts Payable Short-term Notes Payable Long-term Notes Payable Common Stock, no Par Retained Earnings Total Liabilities and Stockholders' Equity $ 29,000 $ 31,000 52,000 196,000 126,500 205,500 169,000 15,500 $ 606,000 $ 394,000 148,000 27,500
