Use the Information Below to Answer the Following Question(s)

question 144

Multiple Choice

Use the information below to answer the following question(s) .The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

-What is the Gamma Division's return on investment?

• A)0.25
• B)0.42
• C)0.60
• D)0.75
• E)0.80

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Definitions:

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using currently known variables to predict future income, asset values, and withdrawal plans.

Forecast The Future

The practice of making predictions based on current and historical information, often using statistical models and analysis.

Depreciation Expense

The deliberate partitioning of the expenditure for a solid asset over its period of utility.

Capital Intensity Ratio

A firm’s total assets divided by its sales, or the amount of assets needed to generate $1 in sales.