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The Top Hat Division of​ Blandon's Fine Menswear had the following results last year​ (in thousands). Sales $ 5 comma 100 comma 000 Operating income $ 510 comma 000 Total assets $ 3 comma 000 comma 000 Current liabilities $ 270 comma 000 ​Management's target rate of return is 23​% and the weighted average cost of capital is 13​%. What is the Top Hat​ Division's capital​ turnover?

Respuesta :

Answer:

1.5

Explanation:

The computation of the capital turnover is shown below:

Capital turnover = Sales ÷ Total assets

where,

Sales is $5,100,000

And, the total assets is $3,000,000

So, the capital turnover is

= $5,100,000 ÷  $3,000,000

= 1.5

By dividing the sales from the total assets we can get the capital turnover and the same is shown above

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