Peggy Grey's Cookies has at the end of the year, Sales of $140,000, Total Assets of $115,000 and Net Income of $50,000.Calculate the Total asset turnover and Capital intensity?
A)1.2174 and 0.8214.
B)1.2174 and 1.
C)1 and 0.8214
D)2.8 and 0.3571.
E)2.3 and 0.4348.

Question

Quizplus · Accepted Answer

Total Asset Turnover = Sales / Total Assets = 140,000 / 115,000 = 1.2174
Capital Intensity = Total Assets / Sales = 115,000 / 140,000 = 0.8214

Peggy Grey's Cookies Has at the End of the Year