Figure 1
The following results for the year are for the Clark Division of First Enterprises:
Clark's average operating assets are £300,000. Clark's minimum required rate of return is 15 percent.
-Refer to Figure 1. Asset turnover for the Clark Division is
A) 66.7%
B) 50.0%
C) 40.0%
D) 20.0%

Question

Quizplus · Accepted Answer

Asset turnover is calculated as Sales divided by Average Operating Assets. Without the specific sales figure from the provided information, we cannot directly calculate the asset turnover. However, the correct choice among the options given, based on standard financial formulas and typical exam questions, would be a conceptual understanding or a placeholder for the correct calculation method. Since the question does not provide enough information (such as sales figures) to calculate the asset turnover, the answer provided is based on the assumption that one would typically calculate asset turnover using the formula: Asset Turnover = Sales / Average Operating Assets. Without specific figures, we cannot derive the exact percentage, making the provided answer speculative based on the options given.

Figure 1 The Following Results for the Year Are for the Clark