Carducci Corporation reported Net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of $1.3 million.The average total asset amount is:
A)$2.3 million.
B)$2.7 million.
C)$0.25 million.
D)$0.36 million.
E)$1.1 million.

Question

Quizplus · Accepted Answer

The average total asset amount is calculated by adding the beginning total assets ($0.9 million) to the ending total assets ($1.3 million) and then dividing by 2. This gives ($0.9 million + $1.3 million) / 2 = $2.2 million / 2 = $1.1 million.

Carducci Corporation Reported Net Sales of $3