Required information [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 $ 3,400,000 Net operating income $ 272,000 Average operating assets $ 850,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 210 %, with no increase in average operating assets. What would be the company's ROI? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Return on investment (ROI) %
Required information [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 $ 3,400,000 Net operating income $ 272,000 Average operating assets $ 850,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 210 %, with no increase in average operating assets. What would be the company's ROI? 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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![Required information
[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
$ 3,400,000
Net operating income
$ 272,000
Average operating assets
$ 850,000
The following questions are to be considered independently.
2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net
operating income will increase by 210%, with no increase in average operating assets. What would be the company's ROI?
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%2Ff53f3188-ae3a-4e3a-8ae6-3f00881b9a7c%2F589426bd-e572-4134-8245-dc334e91a378%2Fx3p6yq2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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
$ 3,400,000
Net operating income
$ 272,000
Average operating assets
$ 850,000
The following questions are to be considered independently.
2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net
operating income will increase by 210%, with no increase in average operating assets. What would be the company's ROI?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return on investment (ROI)
%
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