Asked by
Jyotika Sharma
on Nov 08, 2024
Verified
Calculate net working capital turnover given the following data. Total fixed assets $200,000; long-term liabilities $55,000; total liabilities $80,000; total shareholders' equity $220,000; total sales $800,000.
A) 13.75
B) 12.67
C) 11.75
D) 10.67
E) 9.67
Net Working Capital Turnover
A measure of how effectively a company is using its working capital (current assets minus current liabilities) to generate sales.
Total Fixed Assets
The total value of all long-term, tangible assets held by a company for use in production but not for resale.
Long-Term Liabilities
Obligations due to be paid or settled beyond one year, including loans, bonds, lease obligations, and pension obligations.
- Perform the calculation and elucidation of financial proportions such as times interest earned ratio, equity multiplier, cash coverage ratio, return on equity, profit margin, quick ratio, current ratio, net working capital turnover, and price earnings growth ratio.
Verified Answer
EW
Learning Objectives
- Perform the calculation and elucidation of financial proportions such as times interest earned ratio, equity multiplier, cash coverage ratio, return on equity, profit margin, quick ratio, current ratio, net working capital turnover, and price earnings growth ratio.