The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 12 % ? Asset Turnover 3.0 2.0 Average operating assets ? $ 152,500 Net operating income $ 41,900 ? Stockholders’ equity $ 82,500 $ 122,500 Sales ? ? The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.Net operating income in Year 2 amounted to: Multiple Choice $41,900. $30,000. $36,600. $54,900.
The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 12 % ? Asset Turnover 3.0 2.0 Average operating assets ? $ 152,500 Net operating income $ 41,900 ? Stockholders’ equity $ 82,500 $ 122,500 Sales ? ? The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.Net operating income in Year 2 amounted to: Multiple Choice $41,900. $30,000. $36,600. $54,900.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...
Related questions
Question
The Dry Wall Division reports the following operating data for the past two years:
| Year 1 | Year 2 | ||||||
| Margin | 12 | % | ? | ||||
| Asset Turnover | 3.0 | 2.0 | |||||
| Average operating assets | ? | $ | 152,500 | ||||
| Net operating income | $ | 41,900 | ? | ||||
| $ | 82,500 | $ | 122,500 | ||||
| Sales | ? | ? | |||||
The
Net operating income in Year 2 amounted to:
Multiple Choice
-
$41,900.
-
$30,000.
-
$36,600.
-
$54,900.
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