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) $0.36 million.
B) $2.3 million.
C) $0.25 million.
D) $2.7 million.
E) $1.1 million.

Question

Quizplus · Accepted Answer

The formula for average total assets is (beginning total assets + ending total assets) / 2. Plugging in the numbers given: 
($0.9 million + $1.3 million) / 2 = $1.1 million. Therefore, the correct answer is E.

Carducci Corporation Reported Net Sales of $3