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question 139

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Answer the following questions using the information below:
The top management at Watersport Company, a manufacturer of water sport 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:
 Jetski Division  Boat Division  Surfboard Division  Sales $7500000(a)$1800000 Net operating profit $750000$1080000$450000 Operating assets (b)(c)$1500000 Retum on investment 0.200.10( d) Retum on sales (e)0.120.25 Investment turnover  (f) (g)1.2\begin{array} { l r r r r } & \text { Jetski Division } & \text { Boat Division } & \text { Surfboard Division } \\\text { Sales } & \$ 7500000 & ( \mathrm { a } ) & \$ 1800000 \\\text { Net operating profit } & \$ 750000 & \$ 1080000 & \$ 450000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 1500000 \\\text { Retum on investment } & 0.20 & 0.10 & ( \mathrm {~d} ) \\\text { Retum on sales } & ( \mathrm { e } ) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & ( \mathrm { g } ) & 1.2\end{array}
-A major weakness of comparing two companies using only operating profits as the basis of comparison is that this method ignores differences in the size of the investment required to earn the operating profit.

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Definitions:

Conservative Goals

Objectives typically pursued by conservative political or social movements, emphasizing tradition, stability, limited government intervention, and free-market principles.

Watergate Scandal

A major political scandal in the United States during the early 1970s that stemmed from a break-in at the Democratic National Committee headquarters at the Watergate office complex and the Nixon administration's attempted cover-up of its involvement.

Obstruction of Justice

The act of deliberately interfering with the process of justice and law enforcement, including tampering with evidence or witnesses.

Democratic National Committee

The Democratic National Committee (DNC) is the formal governing body for the United States Democratic Party, responsible for promoting Democratic campaign activities and formulating party policy.

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