ACCT 505 WEEK 6 QUIZ-2

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