Selected Information for Acme Corp -When Calculating Acme's Return on Net Operating Assets in Year

question 30

Multiple Choice

Selected information for Acme Corp.:
$\begin{array}{lrrr}&\text { Year } 1&\text { Year } 2&\text { Year } 3\\\text { Cash } & \$ 1,000 & \$ 1,500 & \$ 1,500 \\\text { Marketable securities } & 8,000 & 2,000 & 2,000 \\\text { Accounts receivable, net } & 2,000 & 3,000 & 2,500 \\\text { Other current assets } & 2,500 & 3,000 & 3,000 \\\text { Property, plant, and equipment } & 4,500 & 6,000 & 7,000 \\\text { Less: accumulated depreciation } & (4,000) & (4,200) & (4,400) \\\text { Goodwill and other intangibles } & 5,000 & 7,500 & 1,000\end{array}$
-When calculating Acme's return on net operating assets in Year 1, which of the following adjustments to the asset base is most appropriate to consider?

• A)Accumulated depreciation adjustment
• B)Intangible asset adjustment
• C)Non-operating asset adjustment
• D)No asset adjustment

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Definitions:

Organizational Goals

The strategic objectives that a company aims to achieve, which guide its operations and direction.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Standard Normal Distribution

A bell-shaped distribution with a mean of zero and a standard deviation of one, used as a reference in statistical analysis.

Normal Distribution

A bell-shaped distribution where data is symmetrically distributed around the mean, with most values clustering around a central region.