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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kindly answer the three questions below:

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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: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
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
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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