Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 10%: (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, X.XX%) ROI |% 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 1% The company's profit margin ratio tells us that they earn $ of 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 ratioConsider the following condensed nancial statements of Safe Mo a (Click the icon to View the comparative balance sheet.) Read the 13mm. The company's asset turnover ratio explains how efciently a company uses its . The company is generating $ of 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 Requirement 5. Calculate the company's RI. Interpret your results. First, select the formula to calculate residual income (RI), _ ( X The RI for Safe Money, Inc. is $ Safe Money, Inc. is 7 management's target rate of return. RI . Inc. The company's target rate of retum is 10%: (Click the icon to View the income statement.) to generate with every $1.00 of Requirement 4. Use the expanded ROI formula to conrm your results from Requirement 1. Interpret your results. with the ROI calculated in Requirement 1. 0 Data Table 0 Data Table - X 2018 2017 Assets C h $ 67 000 $ 55 000 Net Sales Revenue $ 1,000,000 as , ' 600,000 Accounts Receivable 52,200 20,800 CSt f Gd$ 3\" Supplies 4,000 3400 Gross Prot 400,000 ' Operating Expenses 300.000 Property, Plant, and EqUIpment, net 319,800 220,800 141 ,000 116,000 Operating Income 100,000 Patents, net $ 584,000 $ 416,000 Other Income and (Expenses): Total Assets Interest Expense (1500) Liabilities and stockholders' Equity Income Before Income Tax Expense 98,500 Accounts Payable $ 20,000 $ 22,000 34 475 Short-term Notes Payable 139,000 45,000 '"me Tax EXpense $ 64,025 Long-term Notes Payable 187,000 117,500 Net Income Common Stock, no Par 223,000 227,000 Reta'necl Eaminns 15,000 4,500
