The following information pertains to Bishop Concrete: $$\begin{array} { l r }
\text { Sales revenue } & \$ 1,500,000 \
\text { Gross margin } & 600,000 \
\text { Income } & 90,000 \
\text { Invested capital } & 450,000
\end{array}$$ The company's imputed interest rate is 8%.
The capital turnover is:
A) 3.33.
B) 5.00.
C) 16.67.
D) 20.00.
E) 30.00.

Question

The following information pertains to Bishop Concrete: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 1,500,000 \
\text { Gross margin } & 600,000 \
\text { Income } & 90,000 \
\text { Invested capital } & 450,000
\end{array}$$ The company's imputed interest rate is 8%.
The capital turnover is:
A) 3.33.
B) 5.00.
C) 16.67.
D) 20.00.
E) 30.00.

Quizplus · Accepted Answer

Capital turnover = Sales revenue / Invested capital = 1,500,000 / 450,000 = 3.33

The Following Information Pertains to Bishop Concrete The Company's Imputed Interest Rate Is 8