Folder See Inside Connect on.com/flow/connect html work Help CommercialServices.

Question

Folder See Inside Connect on.com/flow/connect html work Help CommercialServices.com Corporation provides business to-business services on the Internet Data concerning the most recent year appear below Net operating Income 53 20,20 Sales Net operating incone Average operating assets $ 223,200 930,006 Exercise 11-13 Part 2 2 The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 30%, with no increase in average operating assets what would be the company's ROOo not round intermediate calculations. Round your answer to 2 decimal places) Next> here to search 0

Explanation / Answer

New Net Operating income

= Existing Net Operating income + (Existing Net Operating income x % increase in Net Operating income)

=$223,200+($223,200 x 310%)

=$223,200+ $        691,920

= $        915,120

ROI = New Net Operating income /Average operating Assets

      =$915,120/$930,000

       =98.40%

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