Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%. The investment turnover for Mason is:
A) 1.08
B) .93
C) 6.57
D) 7.07

Question

Quizplus · Accepted Answer

Investment turnover is calculated as Sales divided by Invested Assets. For Mason Corporation, it is $700,000 / $650,000 = 1.08.

Mason Corporation Had $650,000 in Invested Assets, Sales of $700,000