Managerial Accounting
Acct 2301
Chapter 9 Questions
1.
Last year, Thurco Corporation had revenues of $120,000 and expenses of $70,000.
If Thurco had
$250,000 of equipment and other operating assets last year, what was Thurco’s return on investment?
a.
10%
b.
15%
c.
20%
d.
25%
2.
Last year, Thurco Corporation had revenues of $120,000 and expenses of $70,000.
If Thurco had
$250,000 of equipment and other operating assets last year, what was Thurco’s margin?
3.
Last year, Thurco Corporation had revenues of $120,000 and expenses of $70,000.
If Thurco had
$250,000 of equipment and other operating assets last year, what was Thurco’s turnover?
4.
LINK, Inc. has a margin of 25 % and a turnover of 4.
What is LINK's return on investment?
5.
Kennedy Aeronautics desires an 8% ROI on all investment projects.
Details of a proposed investment
include the following:
Sales Revenues
$20,000
Expenses
14,000
Investment Turnover
.2
Which of the following statements is accurate?
a.
Based on ROI, the company should accept the investment project.
b.
The investment project would have a 6% return.
c.
The company should reject the investment project.
d.
both b and c.
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- Spring '08
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- Managerial Accounting, Revenue, Thurco Corporation
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