i need 4 and 5 Using ROI and RI to evaluate investment centersConsider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 12%.SECURE LIFE, INC.Comparative Balance SheetAs of December 31, 2021, and 202020212020AssetsCash$ 82,000$ 50,000Accounts Receivable54,00020,500Supplies1,000500Property, Plant, and Equipment, net275,000180,000Patents, net138,00099,000Total Assets$ 550,000$ 350,000Liabilities and Stockholders' EquityAccounts Payable$ 40,000$ 32,000Short-term Notes Payable135,00045,000Long-term Notes Payable170,000125,000Common Stock, no Par150,000130,000Retained Earnings55,00018,000Total Liabilities and Stockholders' Equity$ 550,000$ 350,000 SECURE LIFE, INC.Income StatementFor the Year Ended December 31, 2021Sales Revenue$ 6,750,000Cost of Goods Sold3,200,000Gross Profit3,550,000Operating Expenses1,525,000Operating Income2,025,000Other Expenses: Interest Expense(17,000)Income Before Income Tax Expense2,008,000Income Tax Expense(702,800)Net Income$ 1,305,200Requirements1. 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.

Profit Margin ratio = Net Income / sales * 100 Asset Turnover = Sales / Average Total assets ROI =…

SECURE LIFE, INC. Income Statement For the Year Ended December 31,2021 Sales Revenue $ 6,750,000 Cost of Goods Sold 3,200,000 Gross Profit 3,550,000 Operating Expenses 1,525,000 Operating Income 2,025,000 Other Expenses: Interest Expense (17,000) Income Before Income Tax Expense 2,008,000 Income Tax Expense (702,800) Net Income $ 1,305,200 Requirements 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.

SECURE LIFE, INC. Income Statement For the Year Ended December 31,2021 Sales Revenue $ 6,750,000 Cost of Goods Sold 3,200,000 Gross Profit 3,550,000 Operating Expenses 1,525,000 Operating Income 2,025,000 Other Expenses: Interest Expense (17,000) Income Before Income Tax Expense 2,008,000 Income Tax Expense (702,800) Net Income $ 1,305,200 Requirements 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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