Ches Exercise 09-15 Return on investment LO A1, A2 ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales Operating Income Average invested assets $5,000,000 1,000,000 12,500,000 The company's CEO believes that sales for next year will increase by 20% and both profit margin() and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute return on investment for the past year. The company's CEO believes that sales for next year will increase by 20% and both profit margin (%) and assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute return on investment for the past year. Return on Investment Choose Denominator: Choose Numerator: Return on Investment Return on investment Required 2 > The company's CEO believes that sales for next year will increase by 20% and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute profit margin for the past year, Profit Margin Choose Denominator: Choose Numerator: - Profit Margin Profit margin The company's CEO believes that sales for next year will increase by 20% and both profit margin (%) and the level of average assets will be the same as for the past year. 1. Compute return on investment for the past year 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will return on investment equal for next year? Return on Investment Choose Denominator: Choose Numerator: - Return on Investment Return on investment (Required 2 Required 4 >
