The Baily Division Recorded Operating Data as Follows for the Past

question 41

Multiple Choice

The Baily Division recorded operating data as follows for the past two years:

$\begin{array}{|l|r|r|} \hline& \text { Year 1 } & \text { Year 2 } \\\hline \text { Sales } & ? & \$ 1,200,000 \\\hline \text { Shareholders' Equity } & \$ 540,000 & \$ 720,000 \\\hline \text { Average Operating Assets } & \$ 600,000 & ? \\\hline \text { Margin } & 15 \% & ? \\\hline \text { Return on Investment } & 22.5 \% & 18 \% \\\hline\end{array}$
$\text { Baily Division's turnover was exactly the same in both Year } 1 \text { and Year } 2 .$


-What were the average operating assets in Year 2?

• A) $720,000.
• B) $750,000.
• C) $800,000.
• D) $900,000.