Canedo Inc.reported the following results from last year's operations:
At the beginning of this year,the company has a $700,000 investment opportunity with the following characteristics:
If the company pursues the investment opportunity and otherwise performs the same as last year,the combined turnover for the entire company will be closest to:
A) 2.98
B) 17.01
C) 2.53
D) 2.04

Question

Canedo Inc.reported the following results from last year's operations:
 At the beginning of this year,the company has a $700,000 investment opportunity with the following characteristics:
 If the company pursues the investment opportunity and otherwise performs the same as last year,the combined turnover for the entire company will be closest to:
A) 2.98 
B) 17.01 
C) 2.53 
D) 2.04

Quizplus · Accepted Answer

Sales = $9,600,000 + $2,310,000 = $11,910,000
Average operating assets = $4,000,000 + $700,000 = $4,700,000
Turnover = Sales ÷ Average operating assets = $11,910,000 ÷ $4,700,000 = 2.53