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The Dry Wall Division reports the following operating data for the past two years: Year 1 Year 2 Margin 15% ? Asset Turnover 3.8 3
The Dry Wall Division reports the following operating data for the past two years:
Year 1 Year 2
Margin 15% ?
Asset Turnover 3.8 3
Average Operating Assets ? $156500
Net Operating Income $45900 ?
Stockholder's Equity $86500 $118500
Sales ? ?
The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.
Net Operating income in Year 2 amount to :
A. $70,425
B. $89,205
C. $45900
D. $38000
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