Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO10-1] [The following information applies to the questions displayed below.] Commercial

image text in transcribedimage text in transcribed

Required information Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO10-1] [The following information applies to the questions displayed below.] Commercial Services.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 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,100,000 increase in sales, requiring a $275,000 increase in average operating assets, with a resulting $107,800 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) 5 Part 2 of 3 Required information Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO10-1) [The following information applies to the questions displayed below.) 1.11 points CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: 8 02:24:18 Sales Net operating income Average operating assets $ 3,080,000 $ 184,800 $ 770,000 Skipped The following questions are to be considered independently. eBook Print Exercise 10-13 Part 2 References 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.) Return on investment (ROI)

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

IRS Audit Protection And Survival Guide Bed And Breakfasts

Authors: Gerald F. Bernard, Daniel J. Baran

1st Edition

0471166340, 978-0471166344

More Books

Students also viewed these Accounting questions

Question

Define the probate process.

Answered: 1 week ago

Question

Find the derivative of y= cos cos (x + 2x)

Answered: 1 week ago

Question

Identify the elements that make up the employee reward package.

Answered: 1 week ago

Question

Understand the purpose, value and drawbacks of the interview.

Answered: 1 week ago