$$\text { Reference: 12-11 }$$ The Millard Division's Operating Data for the Past Two Years

question 47

Multiple Choice

$$\text { Reference: 12-11 }$$ The Millard Division's operating data for the past two years are provided below: $$\begin{array} { | l | l | l | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Return on investment } & 12 \% & 36 \% \\\hline \text { Stockholders' equity } & \$ 800,000 & \$ 500,000 \\\hline \text { Net operating income } & ? & \$ 360,000 \\\hline \text { Turnover } & ? & 3 \\\hline \text { Margin } & ? & ? \\\hline \text { Sales } & 3,200,000 & ? \\\hline\end{array}$$ Millard Division's margin in Year 2 was 150% of the margin in Year 1.
-The average operating assets for Year 2 were?

• A)$1,000,000.
• B)$1,200,000.
• C)$1,080,000.
• D)$1,388,889.

Prepare adjusting entries for interest on notes receivable.

Calculate average collection period and understand its significance.

Understand the implications of a note receivable being honoured or dishonoured.

Analyze the liquidity of a company through the receivables turnover ratio.

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Definitions:

Wilhelm Wundt

Recognized as the father of experimental psychology, he established the first psychology laboratory at the University of Leipzig in Germany, marking the separation of psychology from philosophy.

Structuralism

A theory in psychology that considers the structure of the human mind and its perceptions as the main object of psychology.

Conscious Experience

The array of thoughts, feelings, perceptions, and sensations that are being experienced by an individual at any given moment.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, celebrating differences in race, language, religion, traditions, and values.