The following information is available for the Berger Company:

-What is the capital turnover?
A) 3.2000
B) 0.1000
C) 0.3125
D) None of the above.

Question

The following information is available for the Berger Company:
 
-What is the capital turnover?
A) 3.2000 
B) 0.1000 
C) 0.3125 
D) None of the above.

Quizplus · Accepted Answer

Capital turnover is calculated by dividing net sales by average total assets. In this case, net sales are $10,000 and average total assets are $3,125. Therefore, capital turnover is $10,000 / $3,125 = 3.2000.

The Following Information Is Available for the Berger Company