Asked by David Tovar on Jul 08, 2024
Verified
The investment turnover for Mason Corporation is
A) 1.08
B) 0.93
C) 6.57
D) 7.07
Investment Turnover
A measure of a company's efficiency in using its assets to generate sales or revenue, calculated as sales divided by average assets.
Return on Investment
A measure of the profitability of an investment, calculated as the ratio of net profit to initial cost.
- Ascertain major financial performance indicators, comprising profit margin, investment turnover, ROI, and residual income.
Verified Answer
JC
Jonathan CastroJul 12, 2024
Final Answer :
A
Explanation :
Investment turnover is calculated by dividing sales by invested assets. For Mason Corporation, this is $700,000 / $650,000 = 1.08.
Learning Objectives
- Ascertain major financial performance indicators, comprising profit margin, investment turnover, ROI, and residual income.