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
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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?

  1. .25 times
  2. 2.5 times
  3. 8 times
  4. 10%
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