CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year follow: $ 3,000,000 450,000 1,800,000 Sales Net operating income Average operating assets Required: Consider each question below independently. 1. Compute the company's ROI. (Round intermediate calculations to 2 decimal places. Enter your percentage answer rounded to two decimal places (i.e., 0.1234 should be entered as 12.34).) ROI
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year follow: $ 3,000,000 450,000 1,800,000 Sales Net operating income Average operating assets Required: Consider each question below independently. 1. Compute the company's ROI. (Round intermediate calculations to 2 decimal places. Enter your percentage answer rounded to two decimal places (i.e., 0.1234 should be entered as 12.34).) ROI
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly answer the three questions below:
Thank you
Transcribed Image Text:CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year
follow:
$ 3,000,000
450,000
1,800,000
Sales
Net operating income
Average operating assets
Required:
Consider each question below independently.
1. Compute the company's ROI. (Round intermediate calculations to 2 decimal places. Enter your percentage answer rounded to
two decimal places (i.e., 0.1234 should be entered as 12.34).)
ROI
Transcribed Image Text:2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income
will increase as a result by 200%, with no increase in average operating assets. What would be the company's ROI? (Do not round
intermediate calculations.)
ROI
3. The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a
$200,000 increase in average operating assets, with a resulting $150,000 increase in net operating income. What would be the
company's ROI in this scenario?
ROI
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