Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all 3 of the requirements! Thank you! Required information [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services

Please answer all 3 of the requirements! Thank you!

image text in transcribedimage text in transcribedimage text in transcribedimage 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: Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. The entrepreneur who founded the company is convinced that sales will increase next year by 40% and that net operating income will increase by 180%, 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.) % 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 increase in net operating income. What would be the company's ROl in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Auditors Guide To Information Systems Auditing

Authors: Richard E. Cascarino

1st Edition

0470009896, 978-0470009895

More Books

Students also viewed these Accounting questions