Dodgers Company's beginning and ending total assets in the year 2019 were $19,700,000 and $22,300,000,respectively.Its asset turnover ratio for the year was calculated to be 1.9 times.Calculate the amount of net sales for the year 2019.

Question

Quizplus · Accepted Answer

Asset turnover ratio = Net sales / Average total assets
Net sales = Asset turnover ratio × Average total assets
Average total assets = ($19,700,000 + $22,300,000) / 2 = 21,000,000
Net sales = 1.9 × 21,000,000 = 39,900,000

Dodgers Company's Beginning and Ending Total Assets in the Year