1. Sales and average operating assets for Company P and Company Q are given below:

sales average opperating

company p 20,000 8,000

company q 50,000 10,000

What is the margin that each company will have to earn in order to generate a return on investment of 20%?

2.

3 Required information [The following information applies to the questions displayed below.] Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: $17,400,000 Net operating income ... ....414+4+4 $870,000 Average operating assets ......... $4,000,000 The division's margin is closest to: Multiple Choice O 28.0%4 Required information [The following information applies to the questions displayed below.] Estes Company has assembled the following data for its divisions for the past year: Division A Division B Average operating assets .......... $500,000 Sales.......... $520,000 Net operating income ...... $100,000 $20,300 Turnover ........ 1.25 4 Margin .........4.4.4 3.9% Minimum required rate of return.......... 14% Residual income .......IAm $6,000 Division B's average operating assets is: Multiple Choice! 5 Required information [The following information applies to the questions displayed below.] Operating data from Tindall Company for last year follows: $900,000 Stockholders' equity. $500,000 Return on investment. 12% Average operating assets . 1.5 Residual income ...........assessment Minimum required rate of return........ 10% Total assets ......... $800,000 The average operating assets amounted to:The Baker Company purchased a piece of equipment with the following expected results: (Ignore income taxes.) Useful life ..........5854151595959594 7 years Yearly net cash inflow ....... $50,000 Salvage value ........mmmmmm $0 Internal rate of return ....... 20% Discount rate ..... 16% The initial cost of the equipment was