1. The minimum ROI established by Jordy Company for project acceptance for all its divisions is 15%. Division A currently has a ROI of 20%. The manager of Division A is considering an additional investment for this year. What step will the manager likely choose to take?

Reject the investment if it returns more than 15% ROI.

Reject the investment if it returns less than 20% ROI.

Accept the investment as long as it provides positive operating income.

Reject the investment if it returns less than 15% ROI.

Accept the investment as long as its ROI is no less than 15%.

2.

Nelson Company purchased $140,000 of goods in September and expects to purchase $130,000 of goods in October. Nelson typically pays for 20% of purchases in the month of purchase and 80% the following month.

Every month, Nelson must make the following payments:

Rent	$5,000
Wages	$14,000
Utilities	$3,000
Telephone	$400
Loan on equipment	$1,200

In mid-October, Nelson expects to buy a new computer for $4,500 using the company credit card. Typically the credit card bill is paid in full in the following month. September credit card purchases totaled $7,000. What is the total cash disbursements expected by Nelson during the month of October?

3.

Penny Company has no beginning inventory. Its total manufacturing costs for the year were $854,000. If cost of goods manufactured was $664,000 and cost of goods sold was $500,000, the amount of ending Work in Process inventory was

4.

Which of the following formulas is used to compute the units to be produced?

Units to be Produced = Expected Unit Sales Units in Desired Ending Inventory

Units to be Produced = Expected Units Sales + Units in Desired Ending Inventory Units in Beginning Inventory

Units to be Produced = Units in Desired Ending Inventory + Units in Beginning Inventory Units in Ending Inventory

Units to be Produced = Expected Unit Sales + Beginning Inventory Units in Desired Ending Inventory