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Question 29

Multiple Choice

Answer the following questions using the information below:
The top management at Groundsource Company, a manufacturer of lawn and garden 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:
 Tractor Division  Tiller Division Digger Division  Sales $10,000,000(a) $2,400,000 Net operating income $1,000,000$1,440,000$600,000 Operating assets (b) (c) $2,000,000 Return on investment 0.200.10 (d)   Return on sales (e) 0.120.25 Investment turnover  (f)   (g)  1.2\begin{array}{lrrr}&\text { Tractor Division }& \text { Tiller Division }& \text {Digger Division }\\\text { Sales } & \$ 10,000,000 & (\mathrm{a}) & \$ 2,400,000 \\\text { Net operating income } & \$ 1,000,000 & \$ 1,440,000 & \$ 600,000 \\\text { Operating assets } & (\mathrm{b}) & (\mathrm{c}) & \$ 2,000,000 \\\text { Return on investment } & 0.20 & 0.10 & \text { (d) } \\\text { Return on sales } & (\mathrm{e}) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & \text { (g) } & 1.2\end{array}
-What is the Tractor Division's investment turnover?


A) .50
B) 1.0
C) 2.0
D) 2.5

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