Sales 3000000net operating income 150000average operating, Ask an Expert

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Sales 3,000,000
Net operating income 150,000
Average operating assets 750,000

Consider each question independently. Carry out all computations to two decimal places.
1. Compute the companys return on investment (ROI)
2. The enterpreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200% with no increase in average operating assets. What would be the companys ROI?
3. The cheif officer of the company believes a more realistic scenario would be a 1,000,000 increase in sales, requiring a 250,000 increase in average operating assets with a resulting 200,000 increase in net operating income. What would be the companys ROI in this scenario?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9984724

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