Question :
121.Align Divisionis one of the divisions of DynaCore.Align’s invested capital : 1302904
121.Align Divisionis one of the divisions of DynaCore.Align’s invested capital is $420,000.Last year, AligngeneratedNOPAT of $64,260on sales of $756,000. Which one of the following correctly calculates Align Division’s return on investment using the two components of return on investment?
A.$64,260 ÷ $756,000
B.11.76% × 0.56
C.$4,260 ÷ $756,000
D.8.5% × 1.80
122.Bottling Division of Fizzies Drink Companybottles soft drink produced by other divisions of Fizzies Drink Company.The Bottling Divisionhad sales last year of $1,200,000, and earned $300,000 in income (NOPAT).Its invested capital was $1,000,000.How much are the Bottling Division’s profit margin, investment turnover, and return on investment?
A.30%, 0.75, and 20%
B.30%, 0.87, and 25%
C.25%, 1.20, and 30%
D.120%, 0.25, and 30%
123.The Pastry Division of Dream Bread has invested capital of $1,300,000.During the past year, the Pastry Divisionreportedsales of $1,200,000 and earned $400,000 of NOPAT.How much return did the Pastry Division generate on each dollar of assets invested in the division?
A.8.5%
B.3.25%
C.27.63%
D.30.77%
124.The Pastry Division of Dream Bread has invested capital of $1,300,000. During the past year, the Pastry Divisionreported sales of $1,200,000 and earned $400,000 of NOPAT. How much profit did the Pastry Division generate on each revenue dollar earned by the division?
A.92.3%
B.16.0%
C.33.3%
D.30.8%
125.The Pastry Division of Dream Bread has invested capital of $1,300,000. During the past year, the Pastry Divisionreported sales of $5,590,000 and earned $400,000 of NOPAT. By how many times did revenue exceed the Pastry Division’s investment?
A.4.30 times
B.23.30 times
C.3.25 times
D.13.98 times
126.Leon Division had interest expense of $94,400.Its income tax rate was 32%.Leon Division generated net income totaling$784,400.With $2,400,000 of assets invested in Leon Division, for how much profit is the Leon Division manager responsible?
A.$631,192
B.$819,608
C.$848,592
D.$725,208
127.Tomlinson Tech has a cost of capital of 8 percent, a required rate of return of 9.5%, and an income tax rate of 30 percent.The Consumer Division of Tomlinson Tech hasassets totaling $2,800,000 and current liabilitiesat$180,000 with $40,000 of this amount being interest-bearing.Sales for the year totaled $1,900,000 and interest expense totaled $20,000. Net income was $166,500 for the year. How muchis the Consumer Division’sinvested capital?
A.$2,560,000
B.$2,660,000
C.$2,940,000
D.$2,620,000
128.Tomlinson Tech has a cost of capital of 8 percent, a required rate of return of 9.5 percent, and an income tax rate of 30 percent. The Consumer Division of Tomlinson Tech has assets totaling $2,800,000 and current liabilities at $180,000 with $40,000 of this amount being interest-bearing. Sales for the year totaled $1,900,000 and interest expense totaled $20,000. Net income was $166,500 for the year. How much is the Consumer Division’sNOPAT?
A.$180,500
B.$172,500
C.$186,500
D.$152,500
129.Tomlinson Tech has a cost of capital of 8 percent, a required rate of return of 9.5 percent, and an income tax rate of 30 percent. The Consumer Division of Tomlinson Tech has assets totaling $2,800,000 and current liabilities at $180,000 with $40,000 of this amount being interest-bearing. Sales for the year totaled $1,900,000 and interest expense totaled $20,000. Net income was $166,500 for the year. How muchis the Consumer Division’s residual income/(loss)?
A.($32,300)
B.($72,200)
C.($46,300)
D.None of these answer choices are correct.
130.The following information is reported for the current year for North Atlantic Division of XT Enterprises:
Sales$3,800,000
Interest expense$250,000
Net income$500,000
Total assets$5,000,000
Noninterest-bearing current liabilities$400,000
Cost of capital8%
Required rate of return14%
Tax rate30%
How much is the division’s NOPAT?
A.$575,000
B.$500,000
C.$750,000
D.$675,000
