Gabbe Industries is a division of a major corporation. Last year the division had total sales of $8,910,000, net operating income of $962,280, and average operating assets of $3,000,000. The company's minimum required rate of return is 10%.Required:a. What is the division's margin?b. What is the division's turnover?c. What is the division's return on investment (ROI)?
What will be an ideal response?
a. Margin = Net operating income ÷ Sales = $962,280 ÷ $8,910,000 = 10.8%
b. Turnover = Sales ÷ Average operating assets = $8,910,000 ÷ $3,000,000 = 3.0
c. ROI = Net operating income ÷ Average operating assets = $962,280 ÷ $3,000,000 = 32.1%
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Which of the following is true for the passage of title in a contract requiring a document of title?
A) The title passes when the shipping arrangements are made. B) The title passes at the time and place of contracting. C) The title passes when the destination of delivery is first mentioned in the contract. D) The title passes when and where the seller delivers the document to the buyer.
Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound. At the year-end balance sheet date, the exchange rate increased to $2.76. If the liability is still unpaid at that time, Kreighton must record a:
A. loss of $138,000. B. loss of $39,500. C. gain of $39,500. D. neither a gain nor loss. E. gain of $138,000.
The "bill of lading" is issued by the seller (exporter) directly to the buyer (importer) in order to claim the goods upon arrival at the destination port
Indicate whether the statement is true or false
Suppose a company in North Carolina contracts to buy toys from a company in China. The firms must use:
a. the UCC because it requires U.S. buyers to use the UCC b. the CISG because it is an international sale of goods c. Chinese law because, under the CISG, the law of the seller is used d. the law of a neutral nation to avoid bias e. none of the other choices are required; they may pick any relevant law