Answered: Sales…

Business

Accounting

Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following are selected data for the division for the consumer products of ABC Corp for 2020:

Sales P 10,000,000

Average invested capital 4,000,000

Net Income 400,000

Cost of Capital 8%

What is the asset turn-over ratio for the division?

.25 times
2.5 times
8 times
10%

Group of answer choices

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