Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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:

Sales$4,100,000Net operating income$164,000Average operating assets$820,000

The following questions are to be considered independently.

Garrison 16e Rechecks 2019-01-10

2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, 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 $1,350,000 increase in sales, requiring a $270,000 increase in average operating assets, with a resulting $203,875 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.)

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

13th Canadian edition

134616316, 134166698, 9780134632407 , 978-0134166698

More Books

Students also viewed these Accounting questions

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago