Astute Intel,a Data Prospecting Company,is Compiling Data from 2011 and 2012

question 85

Multiple Choice

Astute Intel,a data prospecting company,is compiling data from 2011 and 2012 to compare to the company's 2012 performance in order to assess the best company directives for 2013.The operating income of the company in 2011 was $480,000,but new streamlined practices in 2012 resulted in $360,000 in operating income.In 2011 the gross book value of total assets was $1,840,000 and the accumulated depreciation of total assets was $400,000.In 2012 the gross book value of total assets was $1,930,000,while the accumulated depreciation for that year was $130,000.
Required
Compute the 2011 and 2012 ROI using the net book value of total assets.

• A)15.8%;22.0%
• B)33.3%;20.0%
• C)18.9%;10.5%
• D)10.2%;19.9%
• E)5.7%;15.1%

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Definitions:

Scoria Cone

A type of volcano characterized by its cone-shaped peak, formed from volcanic cinders that fall around a central vent.

Igneous Eruptions

Volcanic events that involve the expulsion of magma from the Earth's interior, forming igneous rocks upon cooling.

Flood Basalts

Vast plains of basaltic lava that cover large areas of the Earth's surface, resulting from extensive eruptions.

Rhyolite Ash

Fine volcanic ash produced from explosive eruptions of rhyolite magma, characterized by high silica content.