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Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is the asset turnover for the new technology (round to the nearest whole percentage)?
A) 17%
B) 67%
C) 83%
D) 120%
E) 150%

Question

Use the following information to answer questions 
Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is the asset turnover for the new technology (round to the nearest whole percentage)?
A) 17%
B) 67%
C) 83%
D) 120%
E) 150%

Quizplus · Accepted Answer

Asset turnover is calculated as revenues divided by the investment. Here, it's $3,125,000 / $3,750,000 = 0.8333, or 83% when rounded to the nearest whole percentage.

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