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Selected Financial Data for the Plastic Lumber Company's Outdoor Furniture

Question 125

Multiple Choice

Selected financial data for The Plastic Lumber Company's Outdoor Furniture Division is as follows:  Sales $2,100,000 Operating income $420,000 Total assets $1,050,000 Current liabilities $200,000 Target rate of return 12% Weighted average cost of capital 10%\begin{array}{|l|rr|}\hline \text { Sales } & \$ 2,100,000 \\\hline \text { Operating income } & \$ 420,000 \\\hline \text { Total assets } & \$ 1,050,000 \\\hline \text { Current liabilities } & \$ 200,000 \\\hline \text { Target rate of return } & 12 \% \\\hline \text { Weighted average cost of capital } & 10 \% \\\hline\end{array}


-What is The Plastic Lumber Company's Outdoor Furniture Division capital turnover?


A) 2.0
B) 2.5
C) 5.0
D) 10.5

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