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

question 121

Multiple Choice

Use the information below to answer the following question(s) :
The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year. The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000. Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%.
-What is the Beverage Division's Return on Investment (ROI) ?

Understand the concepts and distinctions between estate tax, excise tax, and other forms of taxation.

Identify the principal purpose of taxes and how they finance government activities.

Recognize the importance of being cautious with tax preparers who offer refund anticipation loans.

Understand the computation of taxable income and how it impacts tax owed.

Definitions:

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending, saving or investing.

Product Application

Goods or services created to meet a demand, thereby providing a solution to a customer problem.

Market Demand

The total volume of a product or service desired by consumers at a particular price and time.

Customer Demand

Refers to the quantity and type of goods or services that consumers are willing and able to purchase at various prices during a specified time period.