Asset turnover is the basis used to assess performance by Cooper Co.
The results in 20Y0 are:
$
Sales
40,000
Cost of sales
(15,000)
Gross profit
25,000
Expenses
(5,000)
Net profit
20,000
Capital employed
Calculate the asset turnover.
The asset turnover is: ________
The correct answer is: 2.
Asset turnover = sales/capital employed
= 40,000/20,000
Asset turnover = 2 times
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