The Following Information Is Reported for the Current Year for North

question 57

Multiple Choice

The following information is reported for the current year for North Atlantic Division of XT Enterprises: $$\begin{array} { l r } \text { Sales } & \$ 3,800,000 \\\text { Interest expense } & \$ 250,000 \\\text { Net income } & \$ 500,000 \\\text { Total assets } & \$ 5,000,000 \\\text { Noninterest-bearing current liabilities } & \$ 400,000 \\\text { Cost of capital } & 8 \% \\\text { Required rate of return } & 14 \% \\\text { Tax rate } & 30 \%\end{array}$$ As it relates to investment center evaluation, how much is the division's investment turnover?

• A) 0.76
• B) 0.71
• C) 0.83
• D) 0.15

---

Definitions:

Phacoemulsification

A modern cataract surgery technique that uses ultrasound waves to emulsify and remove the lens of the eye.

Tonography

A diagnostic test used in ophthalmology to measure the eye's outflow facility, helping in the diagnosis and management of glaucoma.

Anterior Chamber

the fluid-filled space inside the eye between the iris and the cornea's innermost surface.

Gonioscope

An optical instrument used to examine the angle of the anterior chamber of the eye.