The Everest Company has income from operations of $80,000, invested assets of $500,000, and sales of $1,050,000. What is the investment turnover?
A) 1.8
B) 2.1
C) .48
D) 13.13

Question

Quizplus · Accepted Answer

Investment turnover is calculated by dividing sales by invested assets. Therefore, investment turnover for The Everest Company is:
$1,050,000 / $500,000 = 2.1

The Everest Company Has Income from Operations of $80,000, Invested