CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 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 160%, with no increase in average operating assets. What would be the company’s ROI?
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 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 160%, with no increase in average operating assets. What would be the company’s ROI?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 63P: Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture...
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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
Sales | $ | 4,980,000 |
Net operating income | $ | 298,800 |
Average operating assets | $ | 830,000 |
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 160%, with no increase in average operating assets. What would be the company’s ROI?
|
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