Question

The balance sheet of Pure Natural Foods Company this year reports operating assets of $5,489 million, operating liabilities of $2,066 million, total liabilities of $3,117 million, sales of $2,412 million, and net income of 1,024 million.

Based on the above information, calculate Pure Natural Foods Company'saverage net operating assets for the past two years. It is:   

$3,423 million

$2,372 million

$3,562 million

$2,510 million

There is not enough information to calculate this number.

Answer 1

Answer

--Correct Answer = Option #5: "There is not enough information to calculate this number.".

--This is because "Average Net Operating Income" = (beginning operating assets + ending operating assets) / 2

--The question only provides data for 'ending net operating assets' and data for 'beginning net operating assets' is not made available.