Asked by Peter Sailb on May 16, 2024
Verified
The average operating assets for Year 2 were:
A) $1,000,000
B) $1,080,000
C) $1,200,000
D) $1,388,889
Average Operating Assets
The average value of the assets used in the normal operations of a business, typically calculated over a specific period of time.
- Assess metrics of financial performance such as net operating income and average operating assets.
Verified Answer
JN
James NdubuezeMay 21, 2024
Final Answer :
A
Explanation :
Year 2 ROI = Year 2 Net operating income ÷ Year 2 Average operating assets
36% = $360,000 ÷ Year 2 Average operating assets
Year 2 Average operating assets = $360,000 ÷ 36% = $1,000,000
Reference: CH10-Ref7
Agustin Industries is a division of a major corporation.Data concerning the most recent year appears below:
36% = $360,000 ÷ Year 2 Average operating assets
Year 2 Average operating assets = $360,000 ÷ 36% = $1,000,000
Reference: CH10-Ref7
Agustin Industries is a division of a major corporation.Data concerning the most recent year appears below:
Learning Objectives
- Assess metrics of financial performance such as net operating income and average operating assets.
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