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The Baily Division Recorded Operating Data as Follows for the Past

Question 41

Multiple Choice

The Baily Division recorded operating data as follows for the past two years:

 Year 1  Year 2  Sales ?$1,200,000 Shareholders’ Equity $540,000$720,000 Average Operating Assets $600,000? Margin 15%? Return on Investment 22.5%18%\begin{array}{|l|r|r|} \hline& \text { Year 1 } & \text { Year 2 } \\\hline \text { Sales } & ? & \$ 1,200,000 \\\hline \text { Shareholders' 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.\text { Baily Division's turnover was exactly the same in both Year } 1 \text { and Year } 2 .


-What were the average operating assets in Year 2?


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

Correct Answer:

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