Required informationExercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1][The following information applies to the questions displayed below.]CommercialServices.com Corporation provides business-to-business services on the Internet. Dataconcerning the most recent year appear below:Sales$ 5,700,000Net operating income$ 285,000Average operating assets$ 950,000The following questions are to be considered independently.Exercise 10-13 Part 1 (Algo)Required:1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2decimal places.)Return on investment (ROI)%

Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets The following questions are to be considered independently. Exercise 10-13 Part 1 (Algo) $ 5,700,000 $ 285,000 $ 950,000 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets The following questions are to be considered independently. Exercise 10-13 Part 1 (Algo) $ 5,700,000 $ 285,000 $ 950,000 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %

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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PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6.51 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: Complete this question by entering your answers in the tabs below. a. Operating income increases by 9 percent. b. Operating income decreases by 11 percent. c. The company invests $253,000 in each division, an amount that generates $110,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent. Req 1 Req 2A Req 2B Req 2C River Division River Division $ 1,212,000 885,000 $…
< ces A family friend has asked for your help in analyzing the operations of three anonymous companies. Required: Supply the missing data in the tabulation below: (Negative amounts should be indicated with a minus sign.) Sales Net operating income Average operating assets Return on investment Minimum required rate of return: Percentage Dollar amount Residual income (loss) $ 10,870,000 $ 4,120,000 17 % 15 % Company B $ 6,800,000 $ 240,000 $ 15 % 320,000 % C $ 9,400,000 $ 5,200,000 $ 23 % 156,000 %
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