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ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales $ 23,840,000 Operating income 6,556,000 Average invested assets
ZNet Co. is a web-based retail company. The company reports the following for the past year.
Sales | $ | 23,840,000 | |
Operating income | 6,556,000 | ||
Average invested assets | 29,800,000 | ||
The companys CEO believes that sales for next year will increase by 10%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. A. Compute return on investment for the past year. B. Compute profit margin for the past year. C. If the CEOs forecast is correct, what will return on investment equal for next year? D. If the CEOs forecast is correct, what will investment turnover equal for next year?
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