Question

Exercise 11-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO11-1] [The following information applies to the questions displayed below.] Commercial Services.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 $ $ $ 2,400,000 144,000 800,000 The following questions are to be considered independently. Exercise 11-13 Part 1 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

chap 11 alg 1

Answer 1

1) ROI = 144000/800000 = 18%

2) ROI = (144000*4.6)/800000 = 82.80%

3) ROI = (140000+440000)/(800000+112500) = 64%