$ Security, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 2017 Assets Cash 73,000 $ 61,000 Accounts Receivable 58,200 26,800 Supplies 1,800 1,200 Property, Plant, and Equipment, net 304,000 211,000 Patents, net 153,000 110,000 Total Assets $ 590,000 $ 410,000 Liabilities and Stockholders' Equity Accounts Payable $ 26,000 $ 28,000 Short-term Notes Payable 145,000 51,000 Long-term Notes Payable 193,000 123,500 Common Stock, no Par 205,000 197,000 Retained Earnings 21,000 10,500 Total Liabilities and Stockholders' Equity $ 590,000 $ 410,000 Security, Inc. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 9,000,000 Cost of Goods Sold 5,200,000 Gross Profit 3,800,000 Operating Expenses 3,350,000 Operating Income 450,000 Other Income and (Expenses): Interest Expense (31,000) Income Before Income Tax Expense 419,000 Income Tax Expense 146,650 $ 272,350 Net Income Consider the following condensed financial statements of Security, Inc. The company's target rate of return is 20% (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. (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 $ 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. X ROI Using the expanded formula, the ROI for Security, 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 Rl for Security, Inc. is $ Security, Inc. is management's target rate of return