Question
Please show all calculations so that I can see how you got to your answer, thank you! 5. The following information applies to the questions
Please show all calculations so that I can see how you got to your answer, thank you!
5. The following information applies to the questions displayed below.] |
BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: |
Sales | $ | 18,800,000 |
Net operating income | $ | 1,428,800 |
Average operating assets | $ | 4,700,000 |
a. | The entrepreneur who founded the company is convinced that sales will increase next year by 160% and that net operating income will increase by 420%, with no increase in average operating assets. What would be the companys margin, turnover and ROI? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) |
Margin | % |
Turnover | |
ROI | % |
b. | The Chief Financial Officer of the company believes a more realistic scenario would be a $5.0 million increase in sales, requiring an $2,100,000 increase in average operating assets, with a resulting $879,800 increase in net operating income. What would be the companys margin, turnover and ROI in this scenario? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) |
Margin | % |
Turnover | |
ROI | % |
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