[The following information applies to the questions displayed below.]CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the mostrecent year appear below:SalesNet operating incomeAverage operating assets$ 4,700,000$ 188,000$ 940,000The following questions are to be considered independently.3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,950,000 increase in sales, requiring a$390,000 increase in average operating assets, with a resulting $393,875 increase in net operating income. What would be thecompany's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Return on investment (ROI)%

The objective of the question is to calculate the Return on Investment (ROI) for…

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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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Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer questions (1) - (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 2. If Biblio Files Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? 3. What would explain the difference between your answers for (1) and (2)? The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target profit. The companies have goals that are not in the relevant range. Biblio Files Company has a higher contribution margin ratio, and so more of each sales dollar is…
I just need d) answered. A, B,and C have been answered.
You have been asked to make a presentation about an entertainment company. In your research, you locate the accompanying pie chart, which shows the company's revenue by segment expressed in millions of dollars. To enhance your presentation, you have decided to convert the dollar amounts to percents and display both numbers. 2.5 Segment Revenue ($ millions) 6.8 16.3 10.6 (a) What is the total revenue (in millions of dollars)? million % Media Networks Resorts Financial Products Retail Sales (b) What percent (rounded to the nearest tenth percent) does each segment contribute to the total revenue? media networks 45.4 X % resorts 29.9 X % retail sales 6.9 % financial products 18.84
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ Company A 480,000 156,000 21 % 18 % Company B $ 740,000 GA GA $ 53,000 $ 69 18 % 54.000 % $ $ $ Company C 520,000 155,000 % 12 % 5,000
AT&T and Verizon produce and market telecommunications products and are competitors. Key financial figures for these businesses for a recent year follow. Which company is more successful in returning net income from its assets invested?
The below information relates to Drake Ltd which manufactures and sells commercial kitchen equipment. The company is constantly profitable. Drake Ltd’s financial statement ratios are as follows: For each of the following transactions or events, indicate the directional effect (increase, decrease, no change) on the Profit Margin, Current Ratio and Debt to Equity in the table below. Note that you must write either ‘increase’, ‘decrease’ or ‘no change’. Consider each transaction independently of all the other transactions. a. Drake Ltd borrowed an additional $200,000 as short-term, 6-month loan from the bank. b. Sold obsolete inventory purchased for $75,000 for $50,000 cash c. Paid $100,000 dividends to shareholders (previously declared)
[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 $ 4,700,000 $ 188,000 $ 940,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 40% and that net operating income will increase by 250%, 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) %
Subject:accounting
How to calculate the net profit margin ratio?
Required information Skip to question [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 $ 2,760,000 Net operating income $ 110,400 Average operating assets $ 920,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 Required: 1. Compute the company's return on investment (ROI).
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