Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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General accounting question

Horizon Company has assembled the following data for its divisions for the past year:
Division P Division Q
Average operating assets
$750,000 2
Sales
?
$960,000
Net operating income
$157,500
$33,600
Turnover
1.5
3.2
Margin
?
3.5%
Minimum required rate of return 16%
Residual income
$9,600
Division Q's average operating assets is:
a) $187,500 b) $300,000 c) $960,000 d) $3,072,000
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Transcribed Image Text:Horizon Company has assembled the following data for its divisions for the past year: Division P Division Q Average operating assets $750,000 2 Sales ? $960,000 Net operating income $157,500 $33,600 Turnover 1.5 3.2 Margin ? 3.5% Minimum required rate of return 16% Residual income $9,600 Division Q's average operating assets is: a) $187,500 b) $300,000 c) $960,000 d) $3,072,000
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