Roggers Corp.'s beginning and ending total assets in the year 2017 were $19,000,000 and $23,000,000,respectively.Its asset turnover ratio for the year was calculated to be 1.6 times.Calculate the amount of net sales for the year 2017.

Question

Quizplus · Accepted Answer

C)Asset turnover ratio = Net sales / Average total assets
Net sales = Asset turnover ratio × Average total assets
Average total assets = ($19,000,000 + $23,000,000)/ 2 = 21,000,000
Net sales = 1.6 × 21,000,000 = 33,600,000