46) What is the Net income?

A) $2,750,000

B) $1,250,000

C) $125,000

D) $400,000

47) What is the income percentage of revenue?

A) 10.000 percent

B) 3.125 percent

C) 1.000 percent

D) None of the above.

The following information is available for the Peppercorn Company:

Sales

$1,000,000

Invested capital

625,000

ROI

10 percent

48) What is the capital turnover?

A) 1.600

B) 0.100

C) 0.625

D) None of the above.

49) What is the net income?

A) $375,000

B) $625,000

C) $62,500

D) $200,000

50) What is the income percentage of revenue?

A) 10.00 percent

B) 6.25 percent

C) 1.00 percent

D) None of the above.

51) A measure of income or profit divided by the investment required to obtain that income or profit is called

A) return on sales.

B) capital turnover.

C) return on investment.

D) residual income.

52) One way to determine ROI is to multiply income percentage of revenue by

A) income percentage of revenue.

B) capital turnover.

C) residual income.

D) cost of capital.

53) An improvement in either capital turnover or income percentage of revenue , without changing the other, will also improve the

A) residual income.

B) cost of capital.

C) net book value.

D) rate of return on invested capital.

54) The result of the calculation, which divides income by revenue is called

A) income percentage of revenue.

B) residual income.

C) capital turnover.

D) return on investment.

55) Which of the following changes would increase return on investment?

A) An increase in expenses and a decrease in sales at the same time

B) An increase in assets

C) A decrease in sales revenue

D



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