If Operating Income for a Division Is $120,000, Sales Are

question 3

True/False

If operating income for a division is $120,000, sales are $975,000, and invested assets are $750,000, the investment turnover would be 6.3.

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Definitions:

Net Income

The remaining income of a corporation after deducting all expenditures and tax obligations from the income.

Owner's Capital

The total amount of money and assets invested in a company by its owner or shareholders.

Income Statement

A financial document that summarizes a company's revenues, expenses, and profits over a specific period.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, including assets, liabilities, and equity.