Accounting 2 Chapter 10

Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [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: The following questions are to be considered independently. Exercise 10-13 Part 1 (Algo) Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [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: The following questions are to be considered independently. Exercise 10-13 Part 2 (Algo) 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 100%, with no increase in average operating assets. What would be the company's ROl? (Do not round intermediate caiculations. Round your answer to 2 decimal places.) Required information Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [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: The following questions are to be considered independently. Exercise 10-13 Part 3( Algo) 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,050,000 increase in sales, requiring a $572,000 increase in average operating assets, with a resulting $165,450 increase in net operating income. What would be the compony's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)