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: Sales $ 3,720,000 Net operating income $ 223,200 Average operating assets $ 930,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 310%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) 9.84 %
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: Sales $ 3,720,000 Net operating income $ 223,200 Average operating assets $ 930,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 310%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) 9.84 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh1.
![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:
Sales
Net operating income
Average operating assets
The following questions are to be considered independently.
$ 3,720,000
$ 223,200
$ 930,000
2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income
will increase by 310%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
9.84 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F07bd1287-1b43-4d71-9500-f758453d24a8%2Fl9wq65r_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
Sales
Net operating income
Average operating assets
The following questions are to be considered independently.
$ 3,720,000
$ 223,200
$ 930,000
2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income
will increase by 310%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
9.84 %
![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:
Sales
$ 3,720,000
$ 223,200
Net operating income.
Average operating assets
$ 930,000
The following questions are to be considered independently.
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,900,000 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
33.00 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F07bd1287-1b43-4d71-9500-f758453d24a8%2Fh2o8qz_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
Sales
$ 3,720,000
$ 223,200
Net operating income.
Average operating assets
$ 930,000
The following questions are to be considered independently.
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,900,000 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
33.00 %
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