Asked by Nikki Tajdar on May 22, 2024
Verified
If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:
A) 12.83
B) 2.65
C) 1.90
D) 3.34
Combined Turnover
A financial ratio that combines and assesses two or more turnover metrics, such as inventory turnover and receivables turnover, to evaluate the efficiency of a business's operations.
Investment Opportunity
A potential financial investment that could generate a return or gain.
- Acquire knowledge on the notion of turnover in investment opportunities.
- Analyze the collective influence of different investment opportunities on the performance metrics of the company.
Verified Answer
JX
Junqing XiangMay 27, 2024
Final Answer :
B
Explanation :
Sales = $12,000,000 + $4,680,000 = $16,680,000
Average operating assets = $5,000,000 + $1,300,000 = $6,300,000
Turnover = Sales ÷ Average operating assets = $16,680,000 ÷ $6,300,000 = 2.65
Reference: CH10-Ref2
Bonilla Inc.has a $700,000 investment opportunity with the following characteristics:
Average operating assets = $5,000,000 + $1,300,000 = $6,300,000
Turnover = Sales ÷ Average operating assets = $16,680,000 ÷ $6,300,000 = 2.65
Reference: CH10-Ref2
Bonilla Inc.has a $700,000 investment opportunity with the following characteristics:
Learning Objectives
- Acquire knowledge on the notion of turnover in investment opportunities.
- Analyze the collective influence of different investment opportunities on the performance metrics of the company.