For questions 16-18: the following data and information are provided for Waltz Corporation. Use net income after taxes as margin. Sales Revenue $1,000,000 Average total assets used during the year = $200,000 Cost of Goods Sold -500,000 Inventory $60,000 = Gross Margin 500,000 Long-term liabilities = $100,000 Selling Expenses -386,000 Accounts receivable = $10,000 Administrative Expenses --80,000 Cost of total invested capital = 12% Net Operating Income 34,000 Fixed expenses $300,000 = Other Income & Expense --6,000 Variable expenses = 666,000 Net Income before Taxes 28,000 Average price per unit sold = $10 Income Taxes -8,000 Net Income after Taxes $ 20,000 16. What is the company's margin (net income after taxes) as a percentage (this is return on sales) and its asset utilization (also called asset velocity and asset turnover)? 10% and .20 2% and 5. 2 and 7% 20% and 12% Sales Revenue $1,000,000 Average total assets used during the year = $200,000 Cost of Goods Sold -500,000 Inventory $60,000 Gross Margin 500,000 Long-term liabilities = $100,000 Selling Expenses -386,000 Accounts receivable = $10,000 Administrative Expenses -80,000 Cost of total invested capital = 12% Net Operating Income 34,000 Fixed expenses = $300,000 Other Income & Expense -6,000 Variable expenses = 666,000 Net Income before Taxes 28,000 Average price per unit sold = $10 Income Taxes -8,000 Net Income after Taxes $ 20,000 17. What is the company's return on assets using net income after taxes? 08 16% 10% O 12% Sales Revenue $200,000 $1,000,000 Average total assets used during the year = Cost of Goods Sold -500,000 Inventory $60,000 Gross Margin 500,000 Long-term liabilities = $100,000 Selling Expenses -386,000 Accounts receivable = $10,000 Administrative Expenses -80,000 Cost of total invested capital = 12% Net Operating Income 34,000 Fixed expenses = $300,000 Other Income & Expense -6,000 Variable expenses = 666,000 Net Income before Taxes 28,000 Average price per unit sold = $10 Income Taxes -8,000 Net Income after Taxes $20,000 18. Is management creating or destroying wealth (stock price)? O Creating because ROA is greater than cost of capital Creating because fixed expenses are less than half of variable expenses Destroying because total assets are too high. Destroying because ROA is less than cost of capital