User Account

All Pages

Effects of changes in sales expenses and assets on

Assignment Help Accounting Basics
Reference no: EM13585812

Effects of Changes in Sales, Expenses, and Assets on ROI.BusServ.com Corporation 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. Carry out all computations to two decimal places.

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

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

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 be the company's ROI in this scenario?

Reference no: EM13585812

Questions Cloud

Determine x determine the maximum speed of the : a spring with a spring constant k is hung vertically. a mass m is attached to it and released in such a way that the
Consider an rc series circuit you measurenbsprnbspto be 887 : 1. consider an rc series circuit. you measurenbsprnbspto be 887 ? andnbspcnbspto be 831 nf. you set the signal
Two large containers a and b of the same size are filled : two large containers a and b of the same size are filled with different fluids. the fluids in containers a and b are
Luthan company uses a predetermined overhead rate of 2220 : 1 harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning
Effects of changes in sales expenses and assets on : effects of changes in sales expenses and assets on roi.busserv.com corporation provides business-to-business services
Midlands design ltd of manchester england is a company : midlands design ltd. of manchester england is a company specializing in providing design services to residential
On 1 january 2014 special ltd acquired a wood lathe for 31 : on 1 january 2014 special ltd acquired a wood lathe for 31 500 which included shipping charges of 500. the lathe has an
Classification of income statement and retained earnings : classification of income statement and retained earnings statement items.the bad debt rate was increased from 1 to 2
You have the opportunity to purchase an office building you : 1 you have the opportunity to purchase an office building. you have a tenant lined up that will generate 16000 per year

Reviews

Write a Review

Accounting Basics Questions & Answers

  Unocrrected misstatements

Uncorrected Misstatement and Performance Materiality. Rivers, CPA is auditing the financial statements of Charger Company, a client for the past five years. During past audits of charger, River has only identified some immaterial misstatements (mo..

  Hank estimates that 3 of the grape concentrate is wasted 10

hnak itzek manufactures and sells homemade wine and he wants to develop a standard cost per gallon. the following are

  What amounts were payable on each class of stock

At December 31, 2011 and 2012, Sloan Corp. had outstanding 2,000 shares of $100 par value 8% cumulative preferred stock and 10,000 shares of $10 par value common stock. At December 31, 2011, dividends in arrears on the preferred stock were $8,000...

  Determine the rate earned on total assets the rate earned

profitability ratios the following selected data were taken from the financial statements of squiggle group inc. for

  Analyze the impact of erroneous classifications

Analyze the impact of erroneous classifications in the operating activities section of the cash flow statement on free cash flow and how this distortion can impact the decisions made by financial statement users.

  Raisen incs budget included the following overhead costs

raisen inc.s budget included the following overhead costs for the current year assuming operations at 80 of capacity or

  Accounting research methodology

Please explain to me the accounting research methodologies of deductive, inductive and pragmatic research methods. Give me some examples to reinforce these methods.

  Comparing actual performance of the operations

The benefits of comparing actual performance of the operations against planned goals include all of the following except:

  E-commerce creates its own risks and therefore special

e-commerce creates its own risks and therefore special internal controls. 1 identify and explain one pitfall and one

  Differential income or loss from discontinuing

The total fixed costs of $50,000 are allocated on the basis of sales volume across the three product lines. The small product line has 30% of the sales volume. What is the differential income or loss from discontinuing the small speaker product li..

  What is the purpose of closing the books

What is the purpose of closing the books? After closing, what is the amount of owner's equity that will be reported on the balance sheet?

  How much dividend income does speedways have

a. How much dividend income does Speedways have?  b. How much and what kind of taxable income does Speedways have because of the distribution?  c. What is Speedways's basis in its stock immediately after the distribution?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd