Exhibit 11-3

Dillon Company has the following information available for one of its divisions:

Average operating assets	$4,000,000
Sales	$4,800,000
Return on investment (ROI)	30%

64. Refer to Exhibit 11-3. Dillon requires a minimum return on its investments of 25%.

Based on this information, what is the division's asset turnover (rounded to two decimal places)?

a. 2.78

b. 0.83

c. 4.00

d. 1.20

e. None of the answer choices is correct.

65. Refer to Exhibit 11-3. If Dillon's cost of capital is 25%, what is the division's residual income?

a. $ 200,000

b. $800,000

c. $440,000

d. $1,200,000

e. None of the answer choices is correct.

66. Filmore Inc. has the following information available for 2016 and 2017:

	2016	2017
Current liabilities	$250,000	$400,000

If you were performing a trend analysis on this information, you would say that current liabilities have:

a. increased by 37.5%.

b. increased by 60%.

c. increased by 62.5%.

d. increased by 60%.

e. None of the answer choices is correct.

67. Pilot Company has the following information available for 2016 and 2017:

	2016	2017
Property, Plant, and Equipment	$4,500,000	$3,600,000

If you were performing a trend analysis on this information, you would say that property, plant, and equipment has:

a. decreased by 20%.

b. decreased by 25%.

c. decreased by 11.1%.

d. decreased by 80%.

e. None of the answer choices is correct.