Question

9. Given the following: Net operating income - $35,000; Turnover = 2; Return on investment -14%. What are “Sales"?_ 10. Given the following: Sales = $700,000; Net operating income - $56,000; Return on investment - 20%. What is "Turnover? average operating assets are $500,000. What is the minimum required rate of retur? a. 10% b. 14% c. 16%. d. 20% c. 24%. Use the following information to answer questions 12 - 13: Selected sales and operating data for Division A is given below: Sales Average operating assets $7,000,000 $2,500,000 $475,000 Minimum required rate of return 12. Which of the following statements are true? a The return on investment for Division A is 19%. b. The residual income for Division A is $375,000. c. Both of the above. d. None of the above. 3. Assume that the Division A manager is presented with an investment opportunity that would yield a rate of return of 17%. Determine whether the Division A manager would accept or reject the opportunity under the two following scenarios: 1) The company evaluates its Division managers based on return on investment (ROD): 2) The company evaluates its Division managers based on residual income. Scenario il Scenario 2 a. Accept Accept b. Reject Reject e Accept d. Reject Reject

Answer 1

As per HOMEWORKLIB POLICY, one question can be asked at a time. So i am giving the answer of first question. Kindly ask the further question separatly. Thanks

9. Return on investment = Net operating income / Average operating assets

0.14 = 35000/Average operating assets

Average operating assets = $250000

Turnover = Sales / Average operating assets

2 = Sales / 250000

Sales = $500000