The Baily Division Recorded Operating Data as Follows for the Past

question 84

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 was the operating income in Year 1?

• A) $90,000.
• B) $135,000.
• C) $140,000.
• D) $150,000.

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Definitions:

Mark

A symbol, sign, or indication of something; in an academic context, it often refers to a grade or score.

Identity Diffusion

Identity status, described by Marcia, that is characterized by absence of commitment and lack of serious consideration of alternatives.

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically between the ages of 13 and 19.

Foreclosure

in the context of identity development, is the premature commitment to an identity without adequate exploration of other options.