Question

Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $470,000; sales of $930,000; and income of $105,000. The investment turnover is:

Answer 1

The investment turnover on one of Kragle Corporation's division operation for the year is 1.90

Step-by-step explanation:

Investment Turnover ratio is calculated by dividing Net sales with the average invested asset. This ratio tells that how much efficiency a company use its resources in revenue generation.

Investment Turnover = Net sales / Average investment assets

Investment Turnover = $930,000 / $470,000

Investment Turnover = 1.90

The investment turnover on one of Kragle Corporation's division operation for the year is 1.90