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

question 34

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 2, which of the following adjustments to the asset base is most appropriate to consider?

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

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Definitions:

Reengineering

A radical redesign of business processes to achieve dramatic improvements in critical aspects like cost, quality, service, and speed.

OD Technique

Organizational Development Technique refers to specific methods used to improve interpersonal, group, or organizational effectiveness.

Team Building

Activities or exercises designed to enhance teamwork, communication, and cooperation among members of a group or organization, aiming to improve collective performance.

Diagnostic Session

A meeting or process where specific issues, problems, or challenges are analyzed to identify solutions or interventions.