Question

The Jones Company purchased assets costing $214,000 which will be depreciated over 5 years using straight-line depreciation and no salvage value. Jones also purchased land and other assets, which are not depreciable, at a cost of $214,000. It is estimated that in 5 years, the value of these assets will be unchanged. Assume that annual cash profits are $122,000 and, for return on Investment (ROI) calculations, the company uses end-of-year asset values. If sales each year average $813,200, what will be the asset turnover using gross book value? Multiple Choice 0 0 0 0

Answer 1

Answer - option d' Explanation salles revenue Asset Turnover = Total assets $ 813,200 $214000+ $214000) $ 813200 $428,000 = $ 109 - option 'd' is correcto