Question
Exercise 22-14 ZNet Co. is a web-based retail company. The company reports the following for 2015: Sales $5,000,000 Operating Income $1,000,000 Average Invested Assets $12,500,000
Exercise 22-14
ZNet Co. is a web-based retail company. The company reports the following for 2015:
| Sales | $5,000,000 |
| Operating Income | $1,000,000 |
| Average Invested Assets | $12,500,000 |
The company's CEO believes that sales for 2016 will increase by 20%, and both profit margin (%) and the level of average invested assets will be the same as for 2015.
1. Compute return on investment for 2015.
2. Compute profit margin for 2015.
3. If the CEO's forecast is correct, what will return on investment equal for 2016?
4. If the CEO's forecast is correct, what will investment turnover equal for 2016?
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The Politics Of Public Management The HRDC Audit Of Grants And Contributions
Authors: David A. Good
2nd Edition
0802085873, 978-0802085870
