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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