Question: Data concerning the most recent year appear below: Sales ...............$ 14,040,000 Net operating income ......... $ 1,193,400 Average operating assets ....... $ 5,200,000 The Chief

Data concerning the most recent year appear below:

Sales ...............$ 14,040,000

Net operating income ......... $ 1,193,400

Average operating assets ....... $ 5,200,000

The Chief Financial Officer of the company believes a more realistic scenario would be a $4 million increase in sales, requiring an $2,016,000 increase in average operating assets, with a resulting $754,920 increase in net operating income. What would be the company’s ROI in this scenario?

Step by Step Solution

★★★★★

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Computation of the companys ROI Current Next year Sales 1... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-F-F-M (800).xlsx

300 KBs Excel File

Students Have Also Explored These Related Finance Questions!

In 1999, Andrew Fastow, chief financial officer of Enron Corp., asked Merrill Lynch, an investment firm, to participate in a bogus sale of three barges so that Enron could record earnings of $12.5...

The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $125,000 F. Master budget based on actual sales of...

In 1999, Andrew Fastow, chief financial officer of Enron Corp., asked Merrill Lynch, an investment firm, to participate in a bogus sale of three barges so that Enron could record earnings of $12.5...

Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 17, 000, 000 Net operating income $ 1, 581, 000 Average operating assets $ 5, 000,...

Hello I have a managerial accounting question that I need help on. Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field...

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:...

HELP! ASAP PLEASE. i keep getting these wrong Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data...

Required information Exercise 11-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO11-1] [The following information applies to the questions displayed below.] CommercialServices.com...

Exercise 11-1 (Algo) Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil...

connect.mheducation.com/flow/connect.html Homework i Saved Help Required information (The following information applies to the questions displayed below.) CommercialServices.com Corporation provides...

How could/would dividends affect an EPS/EBIT analysis? Would it be correct to refer to earnings after taxes, interest, and dividends as retained earnings for a given year?

(Ptolemy's theorem). Let ABCD be a cyclic quadrilateral (a quadri- lateral whose vertices lie on a common circle). Show that |AC||BD| = |AB||CD| + |BC||AD|. Hint. After you draw the diagonals, you...

Oliver Company earned taxable income of $7,500 during 2019, its first year of operations. A reconciliation of pretax financial income and taxable income indicated that an additional $2,500 of...

5.61 Illegal file sharing, continued. Refer to Exercise 5.59. Roughly 30% of those surveyed had illegally file-shared content. Assume that you sample n 300 New Zealanders. (a) What is the...

The following selected information is taken from the work sheet for Warton Company as of December 31, 2013. Using this information, determine the amount for B. Warton, Capital, that should be...

The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $9,000; D. Mai, Withdrawals $800; Services Revenue $13,000; Wages Expense $8,400; and Rent Expense...

Using the data in the tables below, compute Net Cash Flow from Operating Activities for Auburn Tangerine, Inc. for Year 2 : Auburn Tangerine, Incorporated Balance Sheets for the Years Ending December...

Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $4.25 per share and has a 50% retention rate, which it plans to...

Changes in the Cash Account (Please use the appropriate letter for each of the numbered items below. Use ; I for increase, D for decrease or N for no change). Please type the number and the...