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
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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)
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