Asked by Elijah Price on Jun 07, 2024
Verified
The turnover for the investment opportunity is closest to:
A) 14.29
B) 3.20
C) 0.07
D) 0.31
Turnover
A measure of how quickly assets, such as inventory or investments, are converted into sales or revenue within a given period.
Investment Opportunity
A situation where an individual or company can invest in a project or asset with the expectation of generating a favorable return.
- Comprehend the principle of turnover within investment ventures.
Verified Answer
MR
Manuel RodriguezJun 09, 2024
Final Answer :
B
Explanation :
Turnover is calculated as (sales/capital invested).
Sales = 700,000
Capital invested = 219,000
Turnover = 700,000/219,000 = 3.20.
Therefore, the closest option is B.
Sales = 700,000
Capital invested = 219,000
Turnover = 700,000/219,000 = 3.20.
Therefore, the closest option is B.
Explanation :
Turnover = Sales ÷ Average operating assets = $2,240,000 ÷ $700,000 = 3.20
Learning Objectives
- Comprehend the principle of turnover within investment ventures.