The figures shown in the table below are an extract from the accounts of Ridgeway Co. Capital employed is $1.5m.
What is the asset turnover ratio?
|
Revenue |
$1,000,000 |
|
Less cost of sales |
($400,000) |
|
Gross profit |
$600,000 |
|
Expenses |
($300,000) |
|
|
$300,000 |
|
Interest |
($50,000) |
|
Income expense |
($100,000) |
|
Distributable profit |
$150,000 |
|
Dividends |
($50,000) |
|
Retained profit |
$100,000 |
|
|
|
A. 67%
B. 20%
C. 27%
D. 40%
|
