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What will return on investment equal for next year

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Reference no: EM132728999

Problem - ZNet Co. is a web-based retail company. The company reports the following for the past year.

Sales $7,700,000

Operating income 3,234,000

Average invested assets 15,400,000

The company's CEO believes that sales for next year will increase by 20%, and both profit margin (%) and the level of average Invested assets will be the same as for the past year.

Required -

1. Compute return on Investment for the past year.

2. Compute profit margin for the past year.

3. If the CEO's forecast is correct, what will return on Investment equal for next year?

4. If the CEO's forecast is correct, what will Investment turnover equal for next year?

Reference no: EM132728999

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