Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most


 

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

 

! Required information [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 3,720,000 Net operating income $ 223,200 Average operating assets 930,000 The following questions are to be considered independently. Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) % 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 310%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) % 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,900,000 increase in sales, requiring a $475,000 increase in average operating assets, with a resulting $628,230 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve the ROI Return on Investment questions lets follow the steps below ROI Formula The formula ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

1. What are your creative strengths?

Answered: 1 week ago

Question

What metaphors might describe how we work together?

Answered: 1 week ago