Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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

 image text in transcribed 
 
image text in transcribed

[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 $ 4,300,000 $ 301,000 $ 860,000 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 40% and that net operating income will increase by 180%, 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 63.00% (ROI) 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 $ 4,300,000 $ 301,000 $ 860,000 The following questions are to be considered independently. Exercise 10-13 Part 3 (Algo) 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 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.) O Answer is complete but not entirely correct. Return on investment (ROI) 52.22%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve these problems we will follow the formula for Return on Investment ROI ROI Net Operating In... 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

Passive Activity Loss IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304114325, 978-1304114327

More Books

Students also viewed these Accounting questions

Question

finite automata ( FAs ) and their corresponding languages

Answered: 1 week ago

Question

9. Describe the characteristics of power.

Answered: 1 week ago