Question: Required information Exercise 1 0 - 1 3 ( Algo ) Effects of Changes in Sales, Expenses, and Assets on ROI [ LO 1 0
Required information
Exercise Algo Effects of Changes in Sales, Expenses, and Assets on ROI LO
The following information applies to the questions displayed below.
CommercialServices.com provides businesstobusiness services on the Internet. Data concerning the most recent year appear below:
The following questions are to be considered independently.
Exercise Part Algo
The entrepreneur who founded the company is convinced that sales will increase next year by and net operating income will increase by with no increase in average operating assets. What would be the company's ROI?
Note: Do not round intermediate calculations. Round your answer to decimal places.
Required information
Exercise Algo Effects of Changes in Sales, Expenses, and Assets on ROI LO
The following information applies to the questions displayed below.
CommercialServices.com provides businesstobusiness services on the Internet. Data concerning the most recent year appear below:
Sales
$
Net operating income $
Average operating assets $
The following questions are to be considered independently.
Exercise Part Algo
The company's chief financial officer believes a more realistic scenario would be a $ increase in sales, requiring a $ increase in average operating assets, with a resulting $ increase in net operating income. What would be the company's ROI in this scenario?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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