Acct 505 Week 6 Quiz-2

ACCT 505 WEEK 6 QUIZ-2 Grade Details - All Questions 1. Question : Student Answer: (TCO D) A company that has a profit can increase its return on investment by increasing sales revenue and operating expenses by the same dollar amount. increasing average operating assets and operating expenses by the same dollar amount. increasing sales revenue and operating expenses by the same percentage. Instructor Explanation: Points Received: decreasing average operating assets and sales by the same percentage. Chapter 12 5 of 5 Comments: 2. Question : (TCO D) Given the following data, what would ROI be? Sales Net operating income Contribution margin Average operating assets Stockholder's equity Student Answer: $50,000 $5,000 $20,000 $25,000 $15,000 10% 20% 16.7% 80% Instructor See Chapter 12. ROI = Net operating Explanation: income / Average operating assets = $5,000 / $25,000 = 20.0% Points 5 of 5 Received:Comments: 3. Question : (TCO D) Given the following data: What is the return on investment (ROI)? Sales$150.000 Net operating income$15,000 Contribution margin$30,000 Average operating assets $50,000 Stockholder's equity $100,000 Student Answer: 10% 15% 60% 30% Instructor ROI = Net operating income / Average operating Explanation: assets = $15,000 / $50,000 = 30.0% Points 5 of 5 Received: Comments: 1. Question : (TCO D) Financial data for Beaker Company for last year appear below. Beaker Company Statement of Financial Position BeginningEnding Balance Balance Assets Cash Accounts receivable Inventory Plant and Equipment (net) Investment in Cedar Company Land (undeveloped) Total Assets Liabilities and Owners' Equity Accounts payable Long-term debt $50,000 $70,000 20,000 25,000 30,000 35,000 120,000 110,000 80,000 100,000 170,000 170,000 $470,000 510,000 $70,000 250,000 $90,000 250,