Answer: $1,500,000
Step-by-step explanation:
Vello, Inc. Reported a return on investment of 12%, a capital turnover of 5, and income of $180,000. To get the invested capital goes thus:
Formula for return income is:
= Net income /investment
We will now use the formula to compute investment .
12% =180,000/investment
Investment = 180,000/12%
= 180,000/0.12
=$ 1,500,000
Answer: $1,500,000
Step-by-step explanation:
Return on investment = 12%
Capital turnover = 5
Income = $180,000
Invested capital =?
Return on investment = Net profit / cost of investment
Cost of Investment =Net profit / return on investment
Cost of investment = $180,000/0.12
Cost of investment = $1,500,000
