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Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following

Proctor Corporation has multiple facilities across the United States. Management evaluates each facility based on the capital turnover ratio using the DuPont system. The following information pertains to the facility in Pennsylvania for the past year.
Sales ..................... $ 6,300,000 Operating expenses ................2,940,000
Total assets (prior to subtracting accumulated depreciation).................10,500,000 Accumulated depreciation ...............................................656,250
Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation. Which investment base will the Pennsylvania factory manager prefer and why?

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