Question: The Holmes Division recorded operating data as follows for the past year: Sales $200,000 Net operating income $25,000 Average operating assets $100,000 Stockholders equity $80,000

The Holmes Division recorded operating data as follows for the past year:

Sales $200,000

Net operating income $25,000

Average operating assets $100,000

Stockholders equity $80,000

Residual income $13,000

1) For the past year, the return on investment was:

A) 15.75%

B) 20.50%

C) 25.00%

D) 31.25%

2) For the past year, the margin was:

A)12.50%

B) 13.00%

C) 14.75%

D) 15.00%

3. For the past year, the turnover was:

A) 25

B) 10

C) 4

D) 2

4. For the past year, the minimum required rate of return was:

A) 11%

B) 12%

C) 13%

D) 14%

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