The Baily Division recorded operating data as follows for the past two years: Baily Division's turnover was exactly the same in both Year 1 and Year 2.
-The average operating assets in Year 2 were:
A)$720,000
B)$750,000
C)$800,000
D)$900,000

Question

The Baily Division recorded operating data as follows for the past two years:  Baily Division's turnover was exactly the same in both Year 1 and Year 2.
-The average operating assets in Year 2 were:
A)$720,000 
B)$750,000 
C)$800,000 
D)$900,000

Quizplus · Accepted Answer

Turnover in Year1 = ROI in Year 1 F1F1F1S1F1F1F10 Margin in Year 1 = 22.5% F1F1F1S1F1F1F10 15% = 1.5
Turnover in Year 2 = Sales in Year 2 F1F1F1S1F1F1F10 Average operating assets in Year 2
Average operating assets in Year 2 = Sales in Year 2 F1F1F1S1F1F1F10 Turnover in Year 2
= Sales in Year 2 F1F1F1S1F1F1F10 Turnover in Year 1
= $1,200,000 F1F1F1S1F1F1F10 1.5 = $800,000

The Baily Division Recorded Operating Data as Follows for the Past