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Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [The following information applies to the questions displayed below]
Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [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: The following questions are to be considered independently. Exercise 11-16 (Algo) Part 1 Required: 1. Compute the company's return on investment (ROI). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [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: The following questions are to be considered independently. Exercise 1116 (Algo) Part 2 The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income vill increase by 160%, with no increase in average operating assets. What would be the company's ROI? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [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: The following questions are to be considered independently. Exercise 11-16 (Algo) Part 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,400,000 increase in sales, requiring a $166,875 increase in average operating assets, with a resulting $243,500 increase in net operating income. What would be the company's ROl in this scenario? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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