Question
HARD MIKE Company has the following information for its 2020 fiscal period: Sales $3,800,000 Operating Income $585,000 Shareholders' Equity $1,500,000 Average Operating Assets $1,650,000 Minimum
HARD MIKE Company has the following information for its 2020 fiscal period:
| Sales | $3,800,000 |
| Operating Income | $585,000 |
| Shareholders' Equity | $1,500,000 |
| Average Operating Assets | $1,650,000 |
| Minimum Required Rate of Return | 22% |
Required:
- What is HARD MIKEs return on investment (ROI)? Briefly explain your findings. (5 marks)
- What factors can influence ROI to decrease? Provide at least three reasonable factors for the full mark. Why is this ratio used by many firms? (5 marks)
- How increasing operating expenses with no change in sales or operating assets would impact ROI? Briefly explain by providing an example. (5 marks)
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Cloud Security Auditing
Authors: Suryadipta Majumdar, Taous Madi, Yushun Wang, Azadeh Tabiban, Momen Oqaily, Amir Alimohammadifar, Yosr Jarraya, Makan Pourzandi, Lingyu Wang, Mourad Debbabi
1st Edition
3030231305, 978-3030231309
