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Compute return on investment

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Question - ZNet Co. is a web-based retail company. The company reports the following for 2015.

Sales - $13.920.000

Operating income - 6,960,000

Average invested assets - 34,800,000

The company's CEO believes that sales for 2016 will increase by 30%, and both profit margin (%) and the level of average invested assets will be the same as for 2015.

1. Compute return on investment for 2015.

2. Compute the profit margin for 2015.

3. If the CEO's forecast is correct, what will return on investment equal for 2016?

4. If the CEO's forecast is correct, what will investment turnover equal for 2016?

Reference no: EM131604221

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