QUESTION 22

1. The Maxim Corporation reported the following operating results for its three divisions: South, West, and East.

   	South Division				West Division				East Division
   Sales	$	388,000			$	1,780,000			$	2,080,000
   After-tax income	$	28,000			$	55,860			$	114,400
   Divisional assets	$	280,000			$	665,000			$	880,000

   Which division has the largest asset turnover?

   	A.	South
   	B.	West
   	C.	East
   	D.	All three divisions have the same asset turnover

QUESTION 23

1. The Dry Wall Division reports the following operating data for the past two years:

   		Year 1				Year 2
   Margin		15	%			?
   Asset Turnover		2.0				1.5
   Average operating assets		?			$	166,000
   Net operating income	$	61,500				?
   Stockholders equity	$	96,000			$	141,000
   Sales		?				?

   The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2. Average operating assets in Year 1 were:

   	A.	$166,000.
   	B.	$205,000
   	C.	$219,000.
   	D.	$141,000.