Data table Safe Money, Inc. Comparative Balance Sheet As of December 31, 2024 and 2023 Liabilities and Stockholders' Equity Data table Safe Money, Inc. Income Statement For the Year Ended December 31, 2024 \begin{tabular}{lrr} Net Sales Revenue & $1,500,000 \\ Cost of Goods Sold & 700,000 \\ \hline Gross Profit & 800,000 \\ \hline Operating Expenses & 500,000 \\ \hline Operating Income & 300,000 \end{tabular} Other Income and (Expenses): \begin{tabular}{lrr} \multicolumn{1}{c}{ Interest Expense } & (1,700) \\ \cline { 3 - 3 } Income Before Income Tax Expense & 298,300 \\ Income Tax Expense & 104,405 \\ \hline Net Income & $193,895 \\ \hline \hline \end{tabular} 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. Consider the following condensed financial statements of Safe Money, Inc. The company 20% Requirement 1. Calculate the company's ROI. Round all of your answers to four decimal Begin by selecting the formula to calculate return on investment (ROI), and then enter the the company's ROI. (Round your calculations to four decimal places and enter your final t a percent, X.XX2) =ROI= pany's profit margin ratio. Interpret your results. alculate profit margin ratio, and then enter the amounts to the nearest hundredth of a percent, X.X% ) 1=Profitmarginratio1= ells us that they of heyuizmem v. vaicuiate uic cumpany's asset turnover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amoun the company's asset turnover ratio. The company's asset turnover ratio explains how efficiently a company uses its . The company is generating of 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.XXX\%) margin ratio % The company's profit margin ratio tells us that they eam 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 turnover ratio, and then enter the amounts to calculate the company's asset turnover ratio. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1 . Interpret your results. First, select the expanded ROI formula. ROl for Safe Money, Inc. is %. mpany's ROI, management often restates the ROI equation in its expanded form. inded formula with the ROI calculated in Requirement 1. mpany's RI. Interpret your results. ate residual income (RI). ])=R1 Ine kI tor sare money, Inc. Is Safe Money, Inc. is management's target rate of return. Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of refurn is 20% Requirement 1. Calculate the company's ROL. Round all of your answors to four decimal places. Begin by selecting the formula to calculate retum 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, XXX4) 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.X5% ) The company's profit margin ratio tells us that they eam 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 turnover ratio, and then enter the amounts to calculate the company's asset tumover ratio. The company's asset tumover ratio explains how efficiently a company uses its to ganerate . The company is generating of 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. Using the expanded formula, the ROl for Safe Money, Inc. is % To determine what is driving a company's ROI, management olten restates the ROI equation in its expanded form. The ROl 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). 11=x=RI The Ri for Sale Money. Inc. is
