Question: I need the solution to this question. Please include all steps. BossServ.com Corp provides business to business services on the internet. Data concerning the most

I need the solution to this question. Please include all steps. BossServ.com Corp provides business to business services on the internet. Data concerning the most recent year appear below:

Sales- $8,000,000

Net operating income- $800,000

Average operating assets $3, 200,000

Required: Consider each question below independently and carry out computations to two decimal places.

1. Compute the company's return of investment (ROI)

2. The entrepreneur who found the company is convinced that sales will increase next year b 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would the company's ROI be?

3. The chief financial officer of the company believes a more realistic scenario would be a $2 million increase in sales, requiring an $800,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would the company's RIO be in this scenario?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!