The Following Information Pertains to Bishop Concrete The Company's Imputed Interest Rate Is 8

question 33

Multiple Choice

The following information pertains to Bishop Concrete: $$\begin{array} { l r } \text { Sales revenue } & \$ 1,500,000 \\\text { Gross margin } & 600,000 \\\text { Income } & 90,000 \\\text { Invested capital } & 450,000\end{array}$$ The company's imputed interest rate is 8%.
The capital turnover is:

• A) 3.33.
• B) 5.00.
• C) 16.67.
• D) 20.00.
• E) 30.00.

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Definitions:

Consolidated Balance Sheet

A financial statement showing the financial position of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The gain expected to be received from an asset disposal or the amount necessary to cover a liability in a mutual transaction among market counterparts at the estimated date.

Equipment

Equipment consists of the tangible operational assets used by a business to conduct its operations and generate income.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as one single entity.