Solved

Reference: 12-06
the Baily Division Recorded Operating Data as Follows

Question 31

Multiple Choice

Reference: 12-06
The Baily Division recorded operating data as follows for the past two years:  Year 1  Year 2  Sales ?$1,200,000 Stockholders’ equity $540,000720,000 Average operating assets $600,000? Margin 15%? Return on investment 22.5%18%\begin{array} { | l | l | l | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Sales } & ? & \$ 1,200,000 \\\hline \text { Stockholders' equity } & \$ 540,000 & 720,000 \\\hline \text { Average operating assets } & \$ 600,000 & ? \\\hline \text { Margin } & 15 \% & ? \\\hline \text { Return on investment } & 22.5 \% & 18 \% \\\hline\end{array} Baily Division's turnover was exactly the same in both Year 1 and Year 2.
-The average operating assets in Year 2 were?


A) $900,000.
B) $750,000.
C) $800,000.
D) $720,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions