Question
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
Tractor Division | Tiller Division | Digger Division | |
Sales | $10,000,000 | (a) | $2,400,000 |
Net Operating Income | $1,000,000 | $1,440,000 | $600,000 |
Operating assets | (b) | (c) | $2,000,000 |
Return on investments | 0.20 | 0.10 | (d) |
Return on sales | (e) | 0.12 | 0.25 |
Investment turnover | (f) | (g) | 1.2 |
3) What were the sales for the Tiller Division? A) $9,600,000 B) $15,500,000 C) $15,000,000 D) $12,000,000
4) What is the value of the operating assets belonging to the Tractor Division? A) $ 3,500,000 B) $4,500,000 C) $5,000,000 D) $4,000,000
5) What is the value of the operating assets belonging to the Tiller Division? A) $ 14,400,000 B) $ 10,000,000 C) $ 15,000,000 D) $ 12,000,000
6) What is the Digger Division's return on investment? A) .25 B) .60 C) .30 D) .45
7) What is the Tractor Division's return on sales? A) 0.20 B) 0.15 C) 0.12 D) 0.10
8) What is the Tractor Division's investment turnover? A) 2.0 B) 2.5 C) .50 D) 1.0
9) What is the Tiller Division's investment turnover? A) .50 B) 1.2 C) .833 D) 1.5
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