ZNet Co. is a web-based retail company. The company reports the following for the past year.

Sales	$	19,250,000
Operating income		8,085,000
Average invested assets		38,500,000

The companys CEO believes that sales for next year will increase by 20%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEOs forecast is correct, what will return on investment equal for next year? 4. If the CEOs forecast is correct, what will investment turnover equal for next year?

Compute return on investment for the past year. Return on Investment Choose Numerator: 1 Choose Denominator: Return on Investment Return on investment = Required 1 Required 2 Required 3 Required 4 Compute profit margin for the past year. Choose Numerator: Profit Margin 1 Choose Denominator: Profit Margin Profit margin I! Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will return on investment equal for next year? Return on Investment Choose Numerator: 1 Choose Denominator: Return on Investment Return on investment 11 11 Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will investment turnover equal for next year? Investment Turnover Choose Numerator: 1 Choose Denominator: Investment Turnover Investment turnover /