Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required Information x (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

image text in transcribed
image text in transcribed
Required Information x (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 A tA tA 13,640,000 1,091,200 4,400,000 $ value Required information 1.50 points 2. The entrepreneur who founded the company is convinced that sales will increase next year by 130% and that net operating income will increase by 360%, with no increase in average operating assets. What would be the company's ROI? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (.e., 0.1234 should be entered as 12.34).) Margin Turnover ROI References eBook & Resources Worksheet Difficulty: 2 Medium Learning Objective: 09-01 Compute return on investment (ROD) and show how changes in sales expenses, and assets affect RO Check my work Required information value 1.50 points 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $3,000,000 increase in sales, requiring a $1,146,667 increase in average operating assets, with a resulting $472,960 increase in net operating income. What would be the company's ROI in this scenario? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (.e., 0.1234 should be entered as 12.34).) Margin Turnover 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

Critical Marketing Audit The Case Of Apple Inc.

Authors: Joseph Katie

1st Edition

365637712X, 978-3656377122

More Books

Students also viewed these Accounting questions

Question

Stages of a Relationship?

Answered: 1 week ago