Please help Consider the following condensed financial statements of Security, Inc. The company's target rate of return is $20\%$ :

Read the requirements.

Requirement $1.$ Calculate the company's ROI. Round all of your answers to four decimal places.

$x.xx\%$

$$

$$

$]=]=$

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

$=$

The company's profit marain ratio tells us that they earn

$].$

$\%$

$$

of

or every dollar of

or 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 ratio

$|=$

The company's asset turnover ratio explains how efficiently a company uses its

$|$ to generate

The company is generating

of

with every $$1\mathrm{.}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 ROI for Security, 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$).$

The RI for Security, Inc. is

Security, Inc. is

management's target rate of return.