Using the data that you have compiled and or calculated in the previous requirements:
4a.	Calculate Sudsy's ROI for 2019. To calculate average total assets, use the December 31, 2018, balance sheet for the beginning balance and the budgeted balance sheet for December 31, 2019, for the ending balance. Round all of your answers to four decimal places.
4b.	Calculate Sudsy's profit margin ratio for 2019. Interpret your results.
4c.	Calculate Sudsy's asset turnover ratio for 2019. Interpret your results.
4d.	Use the expanded ROI formula to confirm your results from Requirement 10. Interpret your results.
4e.	Sudsy's management has specified a 30% target rate of return. Calculate Sudsey's RI for 2019. Interpret your results.

4a. Calculate Sudsy's ROI for 2019. To calculate average total assets, use the December 31, 2018, balance sheet for the beginning balance and the budgeted balance sheet for December 31, 2019, for the ending balance. Round all of your answers to four decimal places.
		Decimal		%
	ROI:	2.3165	=	231.6503	*
4b. Calculate Sudsy's profit margin ratio for 2019. Interpret your results.
		Decimal		%
	Profit Margin Ratio:	0.6383	=	63.83%	*
	Interpretation:
	A profit marging of 63.83% shows that the company generated a profit of $.64 for every $1 generated.
4c. Calculate Sudsy's asset turnover ratio for 2019. Interpret your results.
		Decimal
	Asset Turnover Ratio:	1.7221	1
	Interpretation:
	This ratio is a reflection of how efficiently the company is utilizing it's assets to generate income. This number indicates that the company generated $1.72 in income for every $1 in assets (averaged).
4d. Use the expanded ROI formula to confirm your results from Requirement 10. Interpret your results.
	Expanded ROI:	109.93%	*
	Interpretation:
4e. Sudsy's management has specified a 30% target rate of return. Calculate Sudsey's RI for 2019. Interpret your results.
	Residual Income:	314,823.10
	Interpretation:

	Sudsy Days
	Balance Sheet
	December 31, 2018
	Assets
	Current Assets:
	Cash			$ 58,000
	A/R			22,000
	Raw Materials Inventory		1,200
	Finished Goods Inventory		5,400
	Total Current Assets			$ 86,600
	Plant Property & Equipment:
	Equipment			142,000
	Less: Accumulated Depreciation		(47,000)	95,000
	Total Assets				181,600
	Liabilities
	Current Liabilities:
	Accounts Payable			$ 8,000
	Stockholders' Equity
	Common Stock, no par		$ 120,000
	Retained Earnings		53,600
	Total stockholders' equity			173,600
	Total Liabilities and Stockholders' Equity		$ 181,600

Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows:
Sudsy Days
Balance Sheet
December 31, 2019
Net Sales Revenue				$ 630,000
Cost of Goods Sold:
Variable				$ 94,890
Fixed				36,540	131,430
Gross Profit					498,570
Selling & Admin Expenses:
Variable				12,600
Fixed				61,400	74,000
Operating Income				424,570
Other income and (Expenses):
Interest Expense				(425)
Income Before Income Taxes			424,145
Income Tax Expense				22,000
Net Income					$ 402,145