The following information pertains to Jupiter Company: $$\begin{array} { l r }
\text { Total assets } & \$ 50,000 \
\text { Total current liabilities } & 30,000 \
\text { Total expenses } & 60,000 \
\text { Total liabilities } & 45,000 \
\text { Total revenues } & 100,000
\end{array}$$ If invested capital is defined as total assets, the capital turnover is _____.
A)0.633
B)1.792
C)0.400
D)2.0

Question

The following information pertains to Jupiter Company: $$\begin{array} { l r } 
\text { Total assets } & \$ 50,000 \
\text { Total current liabilities } & 30,000 \
\text { Total expenses } & 60,000 \
\text { Total liabilities } & 45,000 \
\text { Total revenues } & 100,000
\end{array}$$ If invested capital is defined as total assets, the capital turnover is _____.
A)0.633
B)1.792
C)0.400
D)2.0

Quizplus · Accepted Answer

Capital turnover is calculated as Total Revenues divided by Total Assets. Here, it is $100,000 / $50,000 = 2.0$.

The Following Information Pertains to Jupiter Company If Invested Capital Is Defined as Total Assets, the Capital