Data Table Data Table Life Long, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Life Long, Inc. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 7.000.000 Cost of Goods Sold 4,200,000 Gross Profit 2,800,000 2,450,000 Operating Expenses Operating Income 350,000 Other Income and (Expenses) Interest Expense (33,000) Income Before Income Tax Expenso 317,000 Income Tax Expense 110.950 $ 206,050 Net Income Assets Cash $ 75,000 $ 63,000 Accounts Receivable 60.200 28,800 Supplies 1,800 1,200 Property, Plant, and Equipment, net 298,000 207.000 Patents, not 157.000 108,000 Total Assets $ 502,000 $ 408,000 Liabilities and Stockholders' Equity Accounts Payable $ 28,000 $ 30.000 Short-term Notes Payable 147.000 53,000 Long-term Notes Payable 195,000 125,500 st BEOL Print Done Print Done next question i Requirements 1. 2. 3. Calculate the company's ROI. Round all of your answers to four decimal places. Calculate the company's profit margin ratio. Interpret your results. Calculate the company's asset turnover ratio. Interpret your results. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. Calculate the company's RI. Interpret your results. 4. 5. Print Done la .) Consider the following condensed financial statements of Life Long, Inc. The company's target rate of return is 40%: (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. (R 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. Profit margin ratio % The company's profit margin ratio tells us that they cam $ of for every dollar of Requirement 3. Calculate the company's asset tumover ratio. Interpret your results. Begin by selecting the formula to calculate asset tumover 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 The company is generating $ of to generate 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 Life Long, 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 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). X RI The Rl for Life Long, Inc. is $ Life Long, Inc. is management's target rate of return
