i Data Table 2017 Secure Life, Inc. Comparative Balance Sheet As of December 31, 2018 and 2017 2018 Assets Cash $ 82,000 $ Accounts Receivable 61,600 Supplies 400 Property, Plant, and Equipment, net 299,000 158,000 Patents, net $ 601,000 $ Total Assets Liabilities and Stockholders’ Equity Accounts Payable $ 31,000 $ Short-term Notes Payable 149,000 Long-term Notes Payable 199,000 Common Stock, no Par 201,000 Retained Earnings 21,000 71,000 27,500 500 197,000 103,000 399,000 33,000 49,000 129,000 168,500 19,500 i Data Table Secure Life, Inc. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue $ 10,000,000 Cost of Goods Sold 5,900,000 Gross Profit 4,100,000 3,800,000 Operating Expenses Operating Income 300,000 Other Income and (Expenses): Interest Expense (40,000) Income Before Income Tax Expense 260,000 Income Tax Expense 91,000 169,000 Net Income 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, 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 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 to generate of 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 Secure Life, 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). A ) = RI The RI for Secure Life, Inc. is $ Secure Life, Inc. is y management’s target rate of return. Get Accounting homework help today

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