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Question 38

Multiple Choice

Answer the following questions using the information below:
The top management at Amore Corp, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
 Alpha Division  Beta Division  Gamma Division  Sales $5,500,000(a) $2,500,000 Net operating income $3,500,000$1,100,000$1,200,000 Operating assets (b) (c) $1,600,000 Return on investment 0.250.15 (d)   Return on sales (e) 0.100.5 Investment turnover (f)  (g)  1.5\begin{array}{lrrr}&\text { Alpha Division }&\text { Beta Division }&\text { Gamma Division }\\\text { Sales } & \$ 5,500,000 & (\mathrm{a}) & \$ 2,500,000 \\\text { Net operating income } & \$ 3,500,000 & \$ 1,100,000 & \$ 1,200,000 \\\text { Operating assets } & (\mathrm{b}) & (\mathrm{c}) & \$ 1,600,000 \\\text { Return on investment } & 0.25 & 0.15 & \text { (d) } \\\text { Return on sales } & (\mathrm{e}) & 0.10 & 0.5 \\\text { Investment turnover } & (\mathrm{f}) & \text { (g) } & 1.5\end{array}
-What is the value of the operating assets belonging to the Alpha Division (b) ?


A) $8,666,667
B) $14,000,000
C) $13,000,000
D) $14,303,600

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