Do you think it was a good idea to open the business? Why or why not? What does your answer depend on? Hints: Consider the following:1) Did Cathy make a profit? Was the profit rate (ROI) adequate?Hint: If other firms in the footwear industry obtain ROI greater than 10%, how would you view Organic Footwear? Use the ROI calculated on the Excel BS tab to support your answer.2) Did she need or use all of the invested capital to run the business during the first year? If you were to remove the ST Investments from the Initial Investment amount used to calculate ROI, and re-run the ROI statistic, what is the resulting percentage? Interpret her performance with this modification relative to industry? (Remember: if she does not have the ST Investment, she would not have earned the gain on investment after taxes.)3) How much gross profit did Cathy make per pair (price per unit - cost per unit)?What is this as a percent of sales (gross profit/price)? Look up competitor firms and see what they earn for gross profit percentage. How does Cathy compare?4) How much did Cathy spend in advertising per pair (advertising/units sold)? Once the brand is established, will Cathy need to advertise as heavily to generate the same volume of sales?5) Cathy has substantial amounts of underutilized capital (in cash and ST investments). What are some options for utilizing these resources more effectively in the future?

\f[Miran]: Fnatwear, Ina. Statement nf Retained Earnings Far the "fear Ended December 31, EDIT Retained Earnings, lfl? 5 - Net Income 44HJIJD 44,4410 Less: Dividends. ' - Retained Earnings, 12131!!! [far the balance sheet] 5 44,442\