$$\text { Reference: } 12 - 12$$ The Sherlock Division Recorded Operating Data as Follows for the Recorded

question 34

Multiple Choice

$$\text { Reference: } 12 - 12$$ The Sherlock Division recorded operating data as follows for the past year: $$\begin{array} { | l | c | } \hline \text { Sales } & \$ 300,000 \\\hline \text { Operating expenses } & 225,000 \\\hline \text { Average operating assets } & 225,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Minimum required rate of return } & 20 \% \\\hline\end{array}$$
-Reed Company's sales last year totalled $150,000 and its return on investment (ROI) was 12%. If the company's turnover was 3, then its net operating income for the year must have been?

• A)$12,000.
• B)$6,000.
• C)$18,000.
• D)$2,000.

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Definitions:

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