The Dry Wall Division Reports the Following Operating Data for the Past

question 72

Multiple Choice

The Dry Wall Division reports the following operating data for the past two years:
$\begin{array}{lrr}&\text { Year } 1& \text { Year } 2\\\text { Margin } & 16 \% & ? \\\text { Turnover } & 2.5 & 2.0 \\\text { Average operating assets } & ? & \$ 150,000 \\\text { Net operating income } & \$ 40,000 & ? \\\text { Stockholders' equity } & \$ 80,000 & \$ 125,000\\\text { Sales }&?&?\end{array}$


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The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.
Average operating assets in Year 1 were:

• A) $160,000.
• B) $150,000.
• C) $125,000.
• D) $100,000.

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Definitions:

Natural Progression

The gradual and inherent development or sequence of events that naturally unfolds over time.

Operating Business

An enterprise that is actively engaged in conducting commercial, industrial, or professional activity as its primary function.

Total Liabilities

The cumulative amount of debts or obligations a company owes to external parties, which can include loans, accounts payable, and bonds payable.

Total Assets

The sum of all assets owned by an individual or organization, including both current and non-current assets.