Answer the Following Questions Using the Information Below:
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question 31

Multiple Choice

Answer the following questions using the information below:
The top management at Groundscare Company,a manufacturer of lawn and garden equipment,is attempting to recover from a fire that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:
$$\begin{array} { l r r r } & \text { Tractor Division } & \text { Tiller Division } & \text { Digger Division } \\\text { Sales } & \$ 5000000 & ( \mathrm { a } ) & \$ 1200000 \\\text { Net operating profit } & \$ 500000 & \$ 720000 & \$ 300000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 1000000 \\\text { Return on investment } & 0.20 & 0.10 & ( \mathrm {~d} ) \\\text { Return on sales } & ( \mathrm { e } ) & 0.12 & 0.25 \\\text { Investment turnover } & ( \mathrm { f } ) & ( \mathrm { g } ) & 1.2\end{array}$$
-What were the sales for the Tiller Division?

• A)$4 800 000
• B)$6 000 000
• C)$7 750 000
• D)$7 500 000

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Definitions:

Repossession Proceedings

The legal process by which a lender takes back property when the borrower defaults on payments.

Insolvent

A financial state in which an individual or organization cannot meet its debt obligations due to lack of funds.

Chapter 7 Bankruptcy

A form of bankruptcy that involves the liquidation of a debtor's non-exempt assets to pay off creditors and discharge debts.

Filing Of A Petition

The formal process of submitting a document to a court or authoritative body requesting a specific legal action or decision.