Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 8,840,000 Net operating income $ 680,680 Average
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 8,840,000 Net operating income $ 680,680 Average operating assets $ 2,600,000.
Part 1 The entrepreneur who founded the company is convinced that sales will increase next year by 160% and that net operating income will increase by 420%, with no increase in average operating assets. What would be the companys ROI?
Margin%, Turnover, ROI %
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $3,500,000 increase in sales, requiring a $485,000 increase in average operating assets, with a resulting $676,720 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Margin%, Turnover, ROI %
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