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] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 3,720,000 Net operating income $ 223,200 Average operating assets $ 930,000 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 $1,900,000 increase in sales, requiring a $475,000 increase in average operating assets, with a resulting $628,230 increase in net operating income. What would be the company's ROI in this scenario? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Return on investment (ROI)
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] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 3,720,000 Net operating income $ 223,200 Average operating assets $ 930,000 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 $1,900,000 increase in sales, requiring a $475,000 increase in average operating assets, with a resulting $628,230 increase in net operating income. What would be the company's ROI in this scenario? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Return on investment (ROI)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Urmilaben
![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]
Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most
recent year appear below:
Sales
$ 3,720,000
Net operating income
$ 223,200
Average operating assets
$ 930,000
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 $1,900,000 increase in sales, requiring a
$475,000 increase in average operating assets, with a resulting $628,230 increase in net operating income. What would be the
company's ROI in this scenario?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return on investment (ROI)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd70cd96f-2576-440d-8497-4e86bba75504%2F5362b2a6-c23d-48b5-94ae-937c407ef5d6%2Fp9wbwhg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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]
Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most
recent year appear below:
Sales
$ 3,720,000
Net operating income
$ 223,200
Average operating assets
$ 930,000
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 $1,900,000 increase in sales, requiring a
$475,000 increase in average operating assets, with a resulting $628,230 increase in net operating income. What would be the
company's ROI in this scenario?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return on investment (ROI)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education