Question & Answer: n. Data concerning the most recent year appears below: The division's turnover is closest to: (…..

14 Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income Average operating assets $4,850,000 $17,910,000 $985,050 The divisions turnover is closest to: (Round your answer to 2 decimal places.) O 18.18 O 3.69 O 0.20 O 4.92

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: The division’s turnover is closest to: (Round your answer to 2 decimal places.) 18.18 3.69 0.20 4.92

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Question & Answer: n. Data concerning the most recent year appears below: The division's turnover is closest to: (…..

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Division turnover is equal to Division Sales which is already mentioned in the question.

Hence, it must have been Division Asset Turnover Ratio.

Division Asset Turnover Ratio = [ Turnover or Sales of Division / Asset of Division ]

Turnover or Sales of Division = $ 17,910,000

Asset of Division = Average operating asset of Division = $ 4,850,000

Division Asset Turnover Ratio = [ 17,910,000 / 4,850,000 ] = 3.6928 = 3.69

Division Asset Turnover Ratio = 3.69

Hence, option (b) of 3.69 is correct.

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