The international boot company has income from operations of $80,000, invested assets of $500,000, and sales of $1,525,000. what

Question

bogdanovich [222]

3 years ago

5

The international boot company has income from operations of $80,000, invested assets of $500,000, and sales of $1,525,000. what

is the investment turnover?
a. 16.0

b. 3.05

c. 27.5

d. 0.33

Business

1 answer:

alex41 [277] · Answer 1 · 2022-04-22T04:16:53+03:00

alex41 [277]3 years ago

8 0

The formula of the investment turnover is net sales / (capital + outstanding debt). The capital here is the shareholders' equity. Applying the formula, we have 500,000 / 1,525,000 = 0.327, rounding up to 0.33.