Pure Life, Inc

Comparative Balance Sheet

As of December 31, 2018 and 2017

2018 2017

Assets

Cash	$76,000	$62,000
Accounts Receivable	61,400	26,800
Supplies	600	200
Property, Plant, and Equipment,net	305,000	204,000
Patents,net	163,000	101,000
Total Assets	$606,000	$394,000

Pure Life, Inc.

Income Statement

For the Year Ended December 31,2018

Net Sales Revenue	$6,000,000
Cost of Goods Sold	3,700,000
Gross Profit	2,300,000
Operating Expenses	2,000,000
Operating Income	300,000
Other Income and (Expenses
Interest Expense	(34,000)
Income Before Income Tax Expense	266,000

Consider the following condensed financial statements for Pure Life, Inc. The company's target rate of return is 30%:

Requirements

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

2. Calculate the company's profit margin ration. Interpret your results.

3. Calculate the company's asset turnover ration. Interpret your results.

4. Using the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

5. Calculate the company's RI. Interpret your results.