Question
[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 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 | $ | 16,100,000 |
Net operating income | $ | 1,271,900 |
Average operating assets | $ | 4,600,000 |
value: 1.50 points
Required information
Required: | |
1. | Compute the company's margin, turnover and return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) |
References
eBook & Resources
WorksheetDifficulty: 2 MediumLearning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
value: 1.50 points
Required information
2. | The entrepreneur who founded the company is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the companys ROI? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) |
References
eBook & Resources
WorksheetDifficulty: 2 MediumLearning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
Check my work
value: 1.50 points
Required information
3. | The Chief Financial Officer of the company believes a more realistic scenario would be a $4,000,000 increase in sales, requiring a $1,681,250 increase in average operating assets, with a resulting $657,700 increase in net operating income. What would be the companys ROI in this scenario? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started