Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 10,920,000 Net operating income $ 819,000 Average
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 10,920,000 Net operating income $ 819,000 Average operating assets $ 4,200,000 References Section BreakExercise 11-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] 3.value: 0.33 pointsRequired information Exercise 11-13 Part 1 Required: 1. Compute the company's margin, turnover and return on investment (ROI). (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.)) ReferenceseBook & Resources WorksheetDifficulty: 2 Medium Exercise 11-13 Part 1Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Check my work 4.value: 0.33 pointsRequired information Exercise 11-13 Part 2 2. 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? (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.)) ReferenceseBook & Resources WorksheetDifficulty: 2 Medium Exercise 11-13 Part 2Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI. Check my work 5.value: 0.34 pointsRequired information Exercise 11-13 Part 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $3,000,000 increase in sales, requiring a $440,000 increase in average operating assets, with a resulting $461,640 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started