CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales$4,300,000Net operating income$301,000Average operating assets$860,000 The following questions are to be considered independently.3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Required information[The following information applies to the questions displayed below.]CommercialServices.com Corporation provides business-to-business services on theInternet. Data concerning the most recent year appear below:$ 4,300,000SalesNet operating incomeAverage operating assets$301,000860,000The following questions are to be considered independently.3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875increase in net operating income. What would be the company's ROI in this scenario? (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Return on investment (ROI)%

Return on investment is calculated by dividing net income by average total assets.

Answered: CommercialServices.com Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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


Sales	$	4,300,000
Net operating income	$	301,000
Average operating assets	$	860,000

The following questions are to be considered independently.

3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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:
$ 4,300,000
Sales
Net operating income
Average operating assets
$
301,000
860,000
The following questions are to be considered independently.
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000
increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875
increase in net operating income. What would be the company's ROI in this scenario? (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
%

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