Safe Money, Inc. Comparative Balance Sheet As of December 31, 2024 and 2023 2024 Assets 70,000 $ 2023 Cash 58,000 Accounts Receivable 55,200 23,800 Supplies 4,800 4,200 Property, Plant, and Equipment, net 310,000 214,000 Patents, net 147,000 113,000 Total Assets $ 587,000 $ 413,000 Liabilities and Stockholders' Equity Accounts Payable $ 23,000 $ 25,000 Short-term Notes Payable 142,000 48,000 Long-term Notes Payable 190,000 120,500 Common Stock, no Par 214,000 212,000 Retained Earnings 18,000 7,500 Total Liabilities and Stockholders' Equity $ 587,000 $ 413,000 Safe Money, Inc. Income Statement For the Year Ended December 31, 2024 Net Sales Revenue $ 2,000,000 Cost of Goods Sold 1,650,000 Gross Profit 350,000 250,000 Operating Expenses Operating Income 100,000 Other Income and (Expenses): (18,000) Interest Expense Income Before Income Tax Expense 82,000 Income Tax Expense 28,700 Net Income $ 53,300 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 1:1 = % 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 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 The company is generating of to generate with every $1.00 of Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. ROI Using the expanded formula, the ROI for Safe Money, Inc. is %. with the ROI calculated in 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 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 Safe Money, Inc. is Safe Money, Inc. is management's target rate of return. Safe Money, Inc. Comparative Balance Sheet As of December 31, 2024 and 2023 2024 Assets 70,000 $ 2023 Cash 58,000 Accounts Receivable 55,200 23,800 Supplies 4,800 4,200 Property, Plant, and Equipment, net 310,000 214,000 Patents, net 147,000 113,000 Total Assets $ 587,000 $ 413,000 Liabilities and Stockholders' Equity Accounts Payable $ 23,000 $ 25,000 Short-term Notes Payable 142,000 48,000 Long-term Notes Payable 190,000 120,500 Common Stock, no Par 214,000 212,000 Retained Earnings 18,000 7,500 Total Liabilities and Stockholders' Equity $ 587,000 $ 413,000 Safe Money, Inc. Income Statement For the Year Ended December 31, 2024 Net Sales Revenue $ 2,000,000 Cost of Goods Sold 1,650,000 Gross Profit 350,000 250,000 Operating Expenses Operating Income 100,000 Other Income and (Expenses): (18,000) Interest Expense Income Before Income Tax Expense 82,000 Income Tax Expense 28,700 Net Income $ 53,300 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 1:1 = % 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 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 The company is generating of to generate with every $1.00 of Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. ROI Using the expanded formula, the ROI for Safe Money, Inc. is %. with the ROI calculated in 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 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 Safe Money, Inc. is Safe Money, Inc. is management's target rate of return