Safe Money, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Assets Cash Accounts Receivable Supplies $ .70,000 $ 58,000 55,200 23,800 4,800 4,200 310,000 214,000 147,000 113,000 $ 587,000 $ 413,000 Property, Plant, and Equipment, net Patents, net Total Assets 25,000 Liabilities and Stockholders' Equity Accounts Payable $ 23,000 $ Short-term Notes Payable 142,000 Long-term Notes Payable 190,000 Common Stock, no Par 214,000 Retained Earnings 18,000 48,000 120,500 212,000 7,500 Total Liabilities and Stockholders' Equity $ 587,000 $ 413,000 Print Done Safe Money, Inc. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 2,000,000 Cost of Goods Sold 1,650,000 Gross Profit 350,000 Operating Expenses 250,000 Operating Income 100,000 Other Income and (Expenses): Interest Expense Income Before Income Tax Expense Income Tax Expense (18,000) 82,000 28,700 Net Income $ 53,300 Print Done Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 10%: (Click the icon to view the comparative balance sheet.) !!! (Click the icon to view the income statement.) Read the requirements. 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. ROI % i Requirements - X 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. . Print Done Safe Money, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Assets Cash Accounts Receivable Supplies $ .70,000 $ 58,000 55,200 23,800 4,800 4,200 310,000 214,000 147,000 113,000 $ 587,000 $ 413,000 Property, Plant, and Equipment, net Patents, net Total Assets 25,000 Liabilities and Stockholders' Equity Accounts Payable $ 23,000 $ Short-term Notes Payable 142,000 Long-term Notes Payable 190,000 Common Stock, no Par 214,000 Retained Earnings 18,000 48,000 120,500 212,000 7,500 Total Liabilities and Stockholders' Equity $ 587,000 $ 413,000 Print Done Safe Money, Inc. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 2,000,000 Cost of Goods Sold 1,650,000 Gross Profit 350,000 Operating Expenses 250,000 Operating Income 100,000 Other Income and (Expenses): Interest Expense Income Before Income Tax Expense Income Tax Expense (18,000) 82,000 28,700 Net Income $ 53,300 Print Done Consider the following condensed financial statements of Safe Money, Inc. The company's target rate of return is 10%: (Click the icon to view the comparative balance sheet.) !!! (Click the icon to view the income statement.) Read the requirements. 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. ROI % i Requirements - X 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. . Print Done
