Question

mason corporation had $1,018,000 in invested assets, sales of $1,226,000, operating income amounting to $237,000, and a desired minimum return on investment of 13%. the investment turnover (rounded to two decimal places) for mason corporation is?

Answer 1

The investment turnover for Mason Corporation is calculated by dividing their sales of $1,226,000 by their invested assets of $1,018,000, resulting in an investment turnover of 1.20 after rounding to two decimal places.

Step-by-step explanation:

The student is asking about the investment turnover for Mason Corporation. Investment turnover is a measure of a company's efficiency in using its invested assets to generate sales revenue. It is calculated by dividing sales by average invested assets. Using the given figures for Mason Corporation:

Sales = $1,226,000

Invested Assets = $1,018,000

To find the investment turnover, we divide the sales by the invested assets:

Investment Turnover = Sales / Invested Assets

Investment Turnover = $1,226,000 / $1,018,000

Investment Turnover = 1.204

Rounded to two decimal places, the investment turnover for Mason Corporation is 1.20.