The following information pertains to Wolfe Company

-If invested capital is defined as total assets, the capital turnover is
A) 0.625.
B) 0.160.
C) 0.400.
D) 1.600.

Name: The following information pertains to Wolfe Company -If invested capital is defined as total assets, the capital turnover is A) 0.625. B) 0.160. C) 0.400. D) 1.600.
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Question

The following information pertains to Wolfe Company
 
-If invested capital is defined as total assets, the capital turnover is
A) 0.625. 
B) 0.160. 
C) 0.400. 
D) 1.600.

Quizplus · Accepted Answer

Capital turnover is calculated as sales divided by invested capital (total assets). If the sales are 1.6 times the total assets, the capital turnover is 1.600.

The Following Information Pertains to Wolfe Company