Vselected financial data for the portland porcelain works coffee mug division is as follows: sales $ 2 comma 000 comma 000 operating income $ 400 comma 000 total assets $ 800 comma 000 current liabilities $ 120 comma 000 target rate of return 13% weighted average cost of capital 6% what is the portland porcelain works coffee mug division capital turnover?

Capital turnover = 2.5 times

Explanation:

given data

Sales =  $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13​%

Weighted average cost of capital = 6​%

to find out

Portland Porcelain Works Coffee Mug Division capital​ turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

so

Capital turnover =     ......................1

put here value

Capital turnover =

Capital turnover = 2.5 times

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