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 Reference: 12-04 \text { Reference: 12-04 } Estes Company Has Assembled the Following Data for Its Divisions

Question 81

Multiple Choice

 Reference: 12-04 \text { Reference: 12-04 } Estes Company has assembled the following data for its divisions for the past year:  Division A  Division B  Average operating assets $500,000? Sales ?$520,000 Net operating income $100,000$20,300 Turnover 1.254 Margin ?3.9% Minimum required rate of return 14%? Residual income ?$6,000\begin{array} { | l | l | l | } \hline & \text { Division A } & \text { Division B } \\\hline \text { Average operating assets } & \$ 500,000 & ? \\\hline \text { Sales } & ? & \$ 520,000 \\\hline \text { Net operating income } & \$ 100,000 & \$ 20,300 \\\hline \text { Turnover } & 1.25 & 4 \\\hline \text { Margin } & ? & 3.9 \% \\\hline \text { Minimum required rate of return } & 14 \% & ? \\\hline \text { Residual income } & ? & \$ 6,000 \\\hline\end{array}
-Division B's average operating assets are?


A) $81,200.
B) $2,080,000.
C) $1,333,333.
D) $130,000.

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