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Exercise 22-15 Return on investment LO A1, A2 ZNet Co. is a web-based retail company. The company reports the following for 2017. Sales Operating income
Exercise 22-15 Return on investment LO A1, A2 ZNet Co. is a web-based retail company. The company reports the following for 2017. Sales Operating income Average invested assets $5,000,000 1,000,000 12,500,000 The company's CEO believes that sales for 2018 will increase by 20% and both profit margin (%) and the level of average invested assets will be the same as for 2017. 1. Compute return on investment for 2017. 2. Compute profit margin for 2017. 3. If the CEO's forecast is correct, what will return on investment equal for 2018? 4. If the CEO's forecast is correct, what will investment turnover equal for 2018? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 Compute return on investment for 2017. Return on Investment Choose Numerator: Choose Denominator: Return on Investment Return on investment Required 2> Required 1 Required 2 Required 3 Required 4 Compute profit margin for 2017. Profit Margin Profit Margin Profit margin Choose Numerator: Choose Denominator: Required Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3Required 4 If the CEO's forecast is correct, what will return on investment equal for 2018? Return on Investment Choose Numerator: Choose Denominator: Return on Investment Return on investment Required 2 Required 4 Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will investment turnover equal for 2018? Investment Turnover Choose Numerator: Choose Denominator: Investment Turnover Investment turnover K Required 3 Required4
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