Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 Part 2 of 3 2 points ellook Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1]

image text in transcribedimage text in transcribed

4 Part 2 of 3 2 points ellook Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [The following information applies to the questions displayed below.) CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below. Sales Net operating incone, Average operating assets $ 2,760,000 $ 110,400 $920,000 The following questions are to be considered independently. References Exercise 11-16 (Algo) Part 2 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 300%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (RO) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

15th edition

1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940

More Books

Students also viewed these Accounting questions