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Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 20%: (Click the icon to view the comparative
Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 20%: (Click the icon to view the comparative balance sheet.) B (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 11 % 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. Print Done Data table Safe Money, Inc. Comparative Balance Sheet As of December 31, 2024 and 2023 2024 2023 Assets Cash $ 73,000 $ 61,000 Accounts Receivable 58,200 26,800 Supplies 1,800 1,200 Property, Plant, and Equipment, net 304,000 211,000 Patents, net 153,000 110,000 Total Assets $ 590,000 $ 410,000 Liabilities and Stockholders' Equity Accounts Payable $ 26,000 $ 28,000 Short-term Notes Payable 145,000 51,000 Long-term Notes Payable 193,000 123,500 Common Stock, no Par 205,000 197,000 Retained Earnings 21,000 10,500 Total Liabilities and Stockholders' Equity $ 590,000 $ 410,000 Print Done Data table Safe Money, Inc. Income Statement For the Year Ended December 31, 2024 Net Sales Revenue $ 9,000,000 Cost of Goods Sold 5,200,000 Gross Profit 3,800,000 Operating Expenses 3,350,000 Operating Income 450,000 Other Income and (Expenses): Interest Expense (31,000) Income Before Income Tax Expense 419,000 Income Tax Expense 146,650 Net Income 272,350 Print Done
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