Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information: Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed
Required information: Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [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 Net operating income Average operating assets $ 3,080,000 $184,800 $770,000 The following questions are to be considered independently. Exercise 10-13 Part 2 (Algo) 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income- will increase by 120 %, 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.) Answer is complete but not entirely correct. Return on investment (ROI) 4.89
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started