Blair IncHad $725,000 in Invested Assets, Sales of $1,100,000, Operating Income

question 2

Multiple Choice

Blair Inc.had $725,000 in invested assets, sales of $1,100,000, operating income amounting to $72,000, and a minimum acceptable rate of return of 14% on its invested assets.Blair's investment turnover is _____.

• A) 1.7
• B) 1.3
• C) 1.1
• D) 1.5

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Definitions:

Budgeted Income Statement

A financial statement that projects the income and expenses for a specific period in the future, helping management with planning and decision-making.

Accrued Income Taxes

Accrued income taxes are taxes that a company has incurred but has not yet paid during the reporting period.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in value over time.

Budgeted Balance Sheet

A financial statement that projects assets, liabilities, and equity balances at the end of a future period based on planned business activities.