95. The Western Division of Guinn Corp. had an ROI of 25% when sales were $2 mil
ID: 2428247 • Letter: 9
Question
95. The Western Division of Guinn Corp. had an ROI of 25% when sales were $2 million and controllable margin was $400,000. What were the average operating assets?
A) $100,000
B) $500,000
C) $1,600,000
D) $8,000
96. Janes Corporation recorded operating data for its Cheap division for the year. Janes requires its return to be 10%.Sales $ 700,000
Controllable margin 80,000
Total average assets 1,000,000
Fixed costs 50,000
What is the ROI for the year?
A) 8%
B) 70%
C) 5%
D) 3%
97. Finney Co. manufactures a product requiring two pounds of direct material. During 2011, Finney purchases 24,000 pounds of material for $74,400 when the standard price per pound is $3.00. During 2011, Finney uses 22,000 pounds to make 12,000 products. The standard direct material cost per unit of finished product is
A) $6.20.
B) $6.76.
C) $6.00.
D) $6.40.
98. A project has an annual rate of return of 15%. The project cost $80,000, has a 5-year useful life, and no salvage value. Straight-line depreciation is used. The annual net income, exclusive of depreciation, was
A) $28,000.
B) $22,000.
C) $31,800.
D) $12,000.
99. Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows?1. Declaration of a cash dividend paid during the period.
2. Net income for the period.
A) 1
B) 2
C) Neither 1 nor 2.
D) Both 1 and 2.
100. Kandy Kane Corporation has income before taxes of $800,000 and an extraordinary gain of $200,000. If the income tax rate is 25% on all items, the income statement should show income before irregular items and extraordinary items, respectively, of
A) $650,000 and $200,000.
B) $650,000 and $150,000.
C) $600,000 and $200,000.
D) $600,000 and $150,000.
Explanation / Answer
95. C) $1,600,00096. A) 8%
97. C) $6.00 98. D) $12,000 99. Note: If Cash dividend declared and paid then A) 1
If Cash dividend only declared Then C) Neither 1 nor 2.
100. D) $600,000 and $150,000 Thank you...
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