CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear...

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Accounting

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

Sales $ 5,980,000
Net operating income $ 448,500
Average operating assets $ 2,600,000

Required information

Required:
1.

Compute the company's margin, turnover and return on investment (ROI). (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))

Margin %
Turnover
ROI %

2.

The entrepreneur who founded the company is convinced that sales will increase next year by 160% and that net operating income will increase by 420%, with no increase in average operating assets. What would be the companys ROI? (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))

Margin %
Turnover
ROI %
3.

The Chief Financial Officer of the company believes a more realistic scenario would be a $2,000,000 increase in sales, requiring a $60,000 increase in average operating assets, with a resulting $325,560 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))

Margin %
Turnover
ROI %

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