Compute the capital turnover ratio

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Reference no: EM133099917

Question - Evaluate Business Performance Using ROI - Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year.

Sales 6,300,000

Operating expenses 2,940,000

Total assets (prior to subtracting accumulated depreciation) 10,500,000

Accumulated depreciation 656,250

Required -

a. Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation.

b. Which investment base will the Pennsylvania factory manager prefer? Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation.

Reference no: EM133099917

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