Asked by
Neb Farlie Saint-Cyr
on Dec 05, 2024
Verified
For Mildura Ltd, if the sales are $1 500 000, the invested capital $450 000 and the profit $90 000, what is the asset turnover for the year?
A) 20%
B) 5%
C) 30%
D) 333%
Asset Turnover
A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.
Invested Capital
The total amount of money that shareholders and debt holders have committed to a company for its operations.
Sales
The activities involved in selling goods or services to customers, including negotiation, closing deals, and transaction processing.
- Grasp the concept and calculation of asset turnover.
Verified Answer
VT
Learning Objectives
- Grasp the concept and calculation of asset turnover.