2) New net operating income = 144000*4.6 = $662400
Return on investment = Operating income/average operating assets = 662400/800000 = 82.80%
3) ROI = (144000+440000)/(800000+112500) = 64%
Required information [The following information applies to the questions displayed below.) CommercialServices.com Corporation provides business-to-business services...
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 $ $ $ 2,400,000 144,000 800,000 The following questions are to be considered independently. Exercise 10-13 Part 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,250,000 increase in sales, requiring a $112,500 increase in average operating assets, with...
Required information [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 $ $ 4,700,000 188,000 The following questions are to be considered independently. 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) Required information [The following information applies to the questions...
! Required information [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: $2,760,000 $ $ Sales Net operating income Average operating assets 110,400 920,000 The following questions are to be considered independently. 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) Required information [The following information applies to...
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 sets $ $ $ 2,400,000 144,000 800.000 The following questions are to be considered independently Exercise 10-13 Part 2 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 360%, with no increase in...
[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 $ 11,880,000 $ 1,069,200 $ 2,700,000 value: 1.50 points 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).) Margin...
[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 $ 21,600,000 $ 1,749,600 $ 4,800,000 value: 1.25 points 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).) Margin...
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 2,280,000 Net operating income $ 250,800 Average operating assets $ 760,000 The following questions are to be considered independently. Garrison 16e Rechecks 2019-01-10 Required: 1. Compute the company's return on investment (ROI). 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 100%, with no increase in...
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,100,000 Net operating income $ 164,000 Average operating assets $ 820,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate...
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,100,000 Net operating income $ 164,000 Average operating assets $ 820,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate...
Required information [The following information applies to the questions displayed below.) Part 2 of 3 CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: points Sales Net operating income Average operating assets $ $ $ 3,240,000 194,400 810,000 eBook The following questions are to be considered independently. Ask Print 2. The entrepreneur who founded the company is convinced that sales will increase next year by 40% and that net operating income will increase...