Use the Information Below to Answer the Following Question(s)

question 16

Multiple Choice

Use the information below to answer the following question(s) :
The Beverage Division of Natural Foods Corporation had sales of $4,200,000 and operating income of $840,000 last year. The total assets of the Beverage Division were $1,680,000, while current liabilities were $360,000. Natural Foods Corporation's target rate of return is 9%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%.
-What is the Beverage Division's asset turnover?

• A) 11.7
• B) 5.0
• C) 2.5
• D) 2.0

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Definitions:

Style and Tone

The manner in which written or spoken communication is presented, influenced by the author's attitude and intended to affect the reader's perception.

Grammatical Errors

Mistakes made in the use of grammar, affecting the syntax, structure, and clarity of written or spoken language.

Organization

The arrangement or structure of related items or activities; in business, the management of parts to operate effectively.

Clarity

The quality of being clear and understandable, ensuring that the message or information is easily comprehended.