Financial Statements of Freedom, Inc Assignment

Consider the following condensed financial statements of Freedom, Inc. The company's target rate of return is 20%.

Freedom, Inc.

Comparative Balance Sheet

As of December 31, 2018 and 2017

Freedom, Inc.

Comparative Balance Sheet

As of December 31, 2018 and 2017

2018

2017

Assets

Cash

$82,000

$71,000

Accounts Receivable

61,600

27,500

Supplies

400

500

Property, Plant, and Equipment, net

299,000

197,000

Patents, net

158,000

103,000

Total Assets

$601,000

$399,000

Liabilities and Stockholders' Equity

Accounts Payable

$31,000

$33,000

Short-term Notes Payable

149,000

49,000

Long-term Notes Payable

199,000

129,000

Common Stock, no Par

201,000

168,500

Retained Earnings

21,000

19,500

Total Liabilities and Stockholders' Equity

$601,000

$399,000

Freedom, 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
Operating Expenses 3,800,000
Operating Income 300,000
Other Income and (Expenses):
Interest Expense (40,000)
Income Before Income Tax Expense 260,000
Income Tax Expense 91,000
Net Income $169,000

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. Get Accounting homework help today
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The paper ordered is very original. Orders are checked by the most advanced anti-plagiarism software in the industry which ensures that the the essay written is 100% original. In that regard,we have a zero tolerance policy for plagiarism.

Read more

Free-revision policy

Our Company thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Company requires that the Customer provides the request within Fifteen (15) days from the first completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endeavor to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency