Borraw Company
the Following Information Pertains to the Three Divisions

question 67

Multiple Choice

Borraw Company
The following information pertains to the three divisions of Borraw Company: $\begin{array}{lll}&\text { Division } A & \text { Division } B\\\text { Sales } & ? & 1,250,000 \\\text { Net operating income } & \$ 25,000 & \$ 75,000 \\\text { Average operating assets } & ? & ? \\\text { Rebum on investment } & 20 \% & 15 \% \\\text { Margin } & 0.05 & ? \\\text { Tumover } & ? & ? \\\text { Target ROI } & 12 \% & 10 \%\end{array}$
-Refer to Borraw Company. What are the average operating assets for Division A?

• A) $5,000
• B) $25,000
• C) $125,000
• D) $208,333

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Definitions:

Operating Data

Information concerning the day-to-day activities of a business, which can include sales figures, production volumes, and operational costs.

Turnover

The rate at which inventory is sold and replaced or an employee leaves and is replaced in a company.

Operating Assets

Assets used for the operations of a business, such as equipment, inventory, and real estate.

Turnover

The total sales or revenue generated by a company within a specific period, indicating the pace at which a business operates.