90.2K

Verified Solution

Link Copied!

Required informetion Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [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: The following questions are to be considered independently. Exercise 11-16 (Algo) Part 1 Required: 1. Compute the company's return on investment (ROI). Note: Do not round intermediate calculations, Round your answer to 2 decimal places. Required informotion Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] 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: The following questions are to be considered independently. Exercise 11-16 (Algo) Port 2 The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income vill increase by 150%, with no increase in average operating assets. What would be the company's ROI? Note: Do not round intermediate colculations. Round your onswer to 2 decimal places. Required information Exercise 11-16 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [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: The following questions are to be considered independently. Exercise 11-16 (Algo) Part 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,200,000 increase in sales, requiring a 5695,000 increase in average operating assets, with a resulting $107,400 increase in net operating income What would be the ompany's ROt in this scenario? Note: Do not round intermediate calculations. Round your answer to 2 decimal places

Answer & Explanation Solved by verified expert

See Answer