Selected Information for Acme Corp -When Calculating Acme's Return on Net Operating Assets in Year

question 29

Multiple Choice

Selected information for Acme Corp.:
$\begin{array}{c}\begin{array}{|l|c|}\hline & \text { Year 1 } \\\hline \text { Cash } & 1,000 \\\hline \text { Marketable securities } & 8,000 \\\hline \text { Occounts receivable-net } & 2,000 \\\hline \text { Other current assets } & 2,500 \\\hline \text { Property, plant and equipment } & 4,500 \\\hline \text { Less: accumulated depreciation } &(4,000) \\\hline \text { Gess: accumulated depreciation } & 5,000\\\hline\end{array}\begin{array}{c|c|}\hline\text { Year 2 } & \text { Year 3 } \\\hline 1,500 & 1,500 \\\hline 2,000 & 2,000 \\\hline 3,000 & 2,500 \\\hline 3,000 & 3,000 \\\hline 6,000 & 7,000 \\\hline(4,200) & (4,400) \\\hline 7,500 & 1,000\\\hline\end{array}\end{array}$
-When calculating Acme's return on net operating assets in Year 3, which of the following adjustments to the asset base is most appropriate to consider?

• A) Accumulated depreciation adjustment
• B) Intangible asset adjustment
• C) Nonoperating asset adjustment
• D) No asset adjustment

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