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Question 48

Multiple Choice

Answer the following questions using the information below:
The top management at Watersport Company, a manufacturer of water sport equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
 Jetski Division  Boat Division  Surfboard Division  Sales $7500000(a) $1800000 Net operating profit $750000$1080000$450000 Operating assets (b) (c) $1500000 Retum on investment 0.200.10( d)  Retum on sales (e) 0.120.25 Investment turnover  (f)  (g) 1.2\begin{array} { l r r r r } & \text { Jetski Division } & \text { Boat Division } & \text { Surfboard Division } \\\text { Sales } & \$ 7500000 & ( \mathrm { a } ) & \$ 1800000 \\\text { Net operating profit } & \$ 750000 & \$ 1080000 & \$ 450000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 1500000 \\\text { Retum on investment } & 0.20 & 0.10 & ( \mathrm {~d} ) \\\text { Retum on sales } & ( \mathrm { e } ) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & ( \mathrm { g } ) & 1.2\end{array}
-What is the value of the operating assets belonging to the Jetski Division?


A) $2 250 000
B) $1 750 000
C) $2 000 000
D) $3 750 000

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