International Boot Company has operating income of $80,000, invested assets of $500,000, and sales of $1,525,000.
-The investment turnover for International Boot Company is
A)16.0
B)3.05
C)0.33
D)27.5

Question

Quizplus · Accepted Answer

Investment turnover is calculated as sales divided by invested assets. Therefore, for International Boot Company, it is $1,525,000 / $500,000 = 3.05.

International Boot Company Has Operating Income of $80,000, Invested Assets