5.

A company reports sales of $10,000,000, income of $2,000,000, and average assets of $25,000,000. Return on investment equals:

Multiple Choice

8.0%.

20.0%.

40.0%.

13.0%.

10.0%.

7.

Using the information below, compute the cash conversion cycle:

Days' sales in accounts receivable	36	days
Days' sales in inventory	53	days
Days' payable outstanding	46	days

Multiple Choice

53 days.

49 days.

43 days.

90 days.

13 days.

8.

A company's division has sales of $6,000,000, income of $240,000, and average assets of $4,800,000. The division's profit margin is:

Multiple Choice

80%.

20%.

10%.

5%.

4%.

9.

The Cheese Division of a manufacturer reports average assets of $40,000, sales of $20,000, and income of $3,200. If the manufacturer has a target income of 7% of average assets, then the Cheese Division's residual income is:

Multiple Choice

$700.

$600.

$800.

$400.

$200.