Secure Money, Inc.
Comparative Balance Sheet
As of December 31, 2024 and 2023
	2024	2023
Assets
Cash	$75,000	$63,000
Accounts Receivable	60,200	28,800
Supplies	1,800	1,200
Property, Plant, and Equipment, net	298,000	207,000
Patents, net	157,000	108,000
Total Assets	$592,000	$408,000
Liabilities and Stockholders' Equity
Accounts Payable	$28,000	$30,000
Short-term Notes Payable	147,000	53,000
Long-term Notes Payable	195,000	125,500
Common Stock, no Par	199,000	187,000
Retained Earnings	23,000	12,500
Total Liabilities and Stockholders' Equity	$592,000	$408,000

Secure Money, Inc.
Income Statement
For the Year Ended December 31, 2024
Net Sales Revenue	$7,000,000
Cost of Goods Sold	4,200,000
Gross Profit	2,800,000
Operating Expenses	2,450,000
Operating Income	350,000
Other Income and (Expenses):
Interest Expense	(33,000)
Income Before Income Tax Expense	317,000
Income Tax Expense	110,950
Net Income	$206,050

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
			=		%

Part 2

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
			=		%

Part 3

The company's profit margin ratio tells us that they earn			of		for every dollar of
	.

Part 4

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
			=

Part 5

The company's asset turnover ratio explains how efficiently a company uses its					to generate
	. The company is generating		of		with every $1.00 of
	.

Part 6

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

First, select the expanded ROI formula.

=

ROI

Part 7

Using the expanded formula, the ROI for Secure Money, Inc. is

%.

Part 8

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

agrees

does not agree

with the ROI calculated in Requirement 1.

Part 9

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

First, select the formula to calculate residual income (RI).

(

)

=

RI

Part 10

The RI for Secure Money, Inc. is

.

Part 11

Secure Money, Inc.

is

exceeding

not meeting

management's target rate of return