Required information[The following information applies to the questions displayed below.]CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the mostrecent year appear below:SalesNet operating incomeAverage operating assets$ 4,500,000270,000900, 0002$The following questions are to be considered independently.3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,750,000 increase in sales, requiring a$350,000 increase in average operating assets, with a resulting $401,875 increase in net operating income. What would be thecompany's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Return on investment (ROI)

Return on investment(ROI) is the ratio between net income and investment made. Revised Scenario :-…

Answered: CommercialServices.com Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,400,000 increase in sales, requiring a $166,875 increase in average operating assets, with a resulting $243,500 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %
[The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 160%, with no increase in average operating assets. What would be the company’s ROI? Return on investment (ROI) %
[The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 2,760,000 Net operating income $ 110,400 Average operating assets $ 920,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,850,000 increase in sales, requiring a $232,500 increase in average operating assets, with a resulting $292,975 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,300,000 Net operating income $ 301,000 Average operating assets $ 860,000 The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Required information Skip to question [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 The following questions are to be considered independently. Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %
Trimax Solutions develops software to support e-commerce. Trimax incurs substantial computer software development costs as well as substantial research and development (R&D) costs related to other aspects of its product line. Under GAAP, if certain conditions are met, Trimax capitalizes software development costs but expenses the other R&D costs. The following information is taken from Trimax’s annual reports ($ in thousands): R&Dcosts....................... Netincome....................... Totalassets(atyear-end) ........... Equity(atyear-end)................ Capitalized software costs Unamortized balance (at year-end) . . Amortization expense . . . . . . . . . . . . Required: 1999 $ 400 312 3,368 2,212 20 4 2000 $ 491 367 3,455 2,460 31 7 2001 $ 216 388 3,901 2,612 2002 $ 212 206 4,012 2,809 2003 $ 355 55 4,045 2,889 31 13 2004 $ 419 81 4,077 2,915 42 15 2005 $ 401 167 4,335 3,146 43 15 2006 $ 455 179 4,650 3,312 36 14 27 22 9 12 CHECK (a) Year2006,$7 CHECK (e)…
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2025 informative related to P. Bride Company ($000 omitted). Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Income expense 1,860 Prepare an income statement for the year 2025 using the multiple-step form. Common shares the outstanding for 2025 total 40,550,000 (000 omitted). (Round earnings per share to 2 decimal places, e.g. 148. Enter other revenue and gains before other expenses and losses).
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2025 informative related to P. Bride Company ($000 omitted). Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Income expense 1,860 Prepare an income statement for the year 2025 using the single-step form. Common shares the outstanding for 2025 total 40,550,000 (000 omitted). (Round earnings per share to 2 decimal places, e.g. 148).
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:Sales .................................................................................. $3,000,000Net operating income ......................................................... $150,000Average operating assets .................................................. $750,000Required: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 50%and that net operating income will increase by 200%, with no increase in average operating assets.What would be the company’s ROI?3. The chief financial officer of the company believes a more realistic scenario would be a $1,000,000increase in sales, requiring a $250,000 increase in average operating assets, with a resulting…
You have recently been employed as a financial analyst for Crusher PLC and have just been provided the most recent financial statements for the 2 years covering 2019 and 2020. The Board of Directors have expressed concerns about the performance of the company and has asked you to analyse the company’s current financial position. The following are the financial statements of Crusher PLC for 2019 and 2020. Income Statement for year ended 31 December 2019 2020 £000 £000 Turnover 17,640 25,690 Cost of Sales (10,100) (16,980) Gross Profit 7,540 8,710 Operating Expenses (3,789) (5,257) Operating Profit 3,751 3,453 Interest Payable       -        (344) Profit before Taxation 3,751 3,109 Taxation (942)    (777) Profit for the year 2,809    2,332 Statement of Financial Position as at 31 December 2019 2020 £000 £000 ASSETS Non-Current Assets 11,120 16,880 Current…
You have recently been employed as a financial analyst for Crusher PLC and have just been provided the most recent financial statements for the 2 years covering 2019 and 2020. The Board of Directors have expressed concerns about the performance of the company and has asked you to analyse the company’s current financial position. The following are the financial statements of Crusher PLC for 2019 and 2020. Income Statement for year ended 31 December 2019 2020 £000 £000 Turnover 17,640 25,690 Cost of Sales (10,100) (16,980) Gross Profit 7,540 8,710 Operating Expenses (3,789) (5,257) Operating Profit 3,751 3,453 Interest Payable       -        (344) Profit before Taxation 3,751 3,109 Taxation (942)    (777) Profit for the year 2,809    2,332 Statement of Financial Position as at 31 December 2019 2020 £000 £000 ASSETS Non-Current Assets 11,120 16,880 Current…
You have recently been employed as a financial analyst for Crusher PLC and have just been provided the most recent financial statements for the 2 years covering 2019 and 2020. The Board of Directors have expressed concerns about the performance of the company and has asked you to analyse the company’s current financial position. The following are the financial statements of Crusher PLC for 2019 and 2020. Income Statement for year ended 31 December 2019 2020 £000 £000 Turnover 17,640 25,690 Cost of Sales (10,100) (16,980) Gross Profit 7,540 8,710 Operating Expenses (3,789) (5,257) Operating Profit 3,751 3,453 Interest Payable       -        (344) Profit before Taxation 3,751 3,109 Taxation (942)    (777) Profit for the year 2,809    2,332 Statement of Financial Position as at 31 December 2019 2020 £000 £000 ASSETS Non-Current Assets 11,120 16,880 Current…

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