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. (Round your calculations to four decimal places and enter your final to the nearest hundredth of a percent, 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 margin ratio tells us that they earn $ of for every dollar of Money Freedom, Inc. Money Freedom, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 Income Statement 2018 2017 For the Year Ended December 31, 2018 Net Sales Revenue $ 2,000,000 Cost of Goods Sold 1,650,000 Assets Cash 70,000 $ 58,000 Gross Profit 350,000 250,000 Accounts Receivable 55,200 23,800 4,800 4,200 Supplies Property, Plant, and Equipment, net Operating Expenses Operating Income Other Income and (Expenses): 100,000 310,000 147,000 214,000 113,000 Patents, net (18,000) $ 587,000 $ 413,000 Interest Expense Income Before Income Tax Expense Total Assets 82,000 28,700 Income Tax Expense Liabilities and Stockholders' Equity Accounts Payable $ 23,000 $ Short-term Notes Payable 142,000 25,000 $ 53,300 Net Income 48,000 Long-term Notes Payable 190,000 120,500 Print Done Common Stock, no Par 214,000 18,000 212,000 7,500 Retained Earnings = ROI % Average total assets 1 he company's profit margin ratio. Interpret your results. Net sales revenue Operating income Target rate of return la to calculate profit margin ratio, and then enter the amounts to calculate the company's profit margin ratio. st hundredth of a percent, X.XX%) Total current liabilities Profit margin ratio % The company's profit margin ratio tells us that they earn $ of for 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 to generate The company's asset turnover ratio explains how efficiently a company uses its The company is generating $ of with every $1.00 of Requirement Use expanded Rol 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 Money Freedom, 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). RI The RI for Money Freedom, Inc. is $ Money Freedom, Inc. is management's target rate of return. to generate The company's asset turnover ratio explains how efficiently a company uses its . The company is generating $ of with every $1.00 of formula to confirm your results from Requirement 1. Interpret your results. after-tax operating income average total assets | current liabilities net income ROI net sales revenue operating income r Money Freedom, Inc. is %
