[The following information applies to the questions displayed below. BusServ.com

Question

[The following information applies to the questions displayed below. BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets 11,310,000 $ 904,800 $ 3,900,000 Consider each question below independently. 5. points 0.50 points Required 1. Compute the company's margin, turnover and return on investment (ROI). (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Margin Turnover ROI

Explanation / Answer

A) S.No Ratio Formula Details Answer 1) Margin Net Income/Sales (904800/11310000) 8.00% 2) Turnover Sales 11310000 11310000 3) ROI Net Income/Investment on Assets (904800/3900000) 23.20% B) S.No Ratio Formula Details Answer 1) Margin Net Income/Sales (4162080/26013000) 16.00% 2) Turnover Sales 26013000 26013000 3) ROI Net Income/Investment on Assets (4162080/3900000) 106.72% Working :- 1) New Sales 11310000 130% 14703000 26013000 2) Net Operating Income 904800 360% 3257280 4162080 C) S.No Ratio Formula Details Answer 1) Margin Net Income/Sales (1359450/14310000) 9.50% 2) Turnover Sales 14310000 14310000 3) ROI Net Income/Investment on Assets (1359450/4770000) 28.50% Working :- Old Increase New 1) New Sales 11310000 3000000 14310000 2) Net operating Income 904800 454650 1359450 3) Operating assets 3900000 870000 4770000

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